An uncompressed bitstream downloads to the device and works as expected, while same design compressed bitstream does not work. DONE goes high, but the device does not function as expected.
This issue is fixed in the 11.3 SW release.
Included in this Answer Record is a .zip file containing the patch fixing this issue in the 11.2 design tools.
Please extract the .zip file into your local Xilinx 11.2\ISE folder.