Arduino 1.6.5 error: CreateProcess: No such file or directory Error compiling.

Arduio 1.6.5 Error in compiling example code - blink
I'm experimenting Arduino Due, by using example "01.Basics/ Blink".
Without change any coding, i click the verify button and it shows error as attachment.

After that i go thru https://www.arduino.cc/en/Guide/ArduinoDue
Followed all the step, esp. install arduino sam boards core

Following is the setting i use:
Board: Arduino Duemilanove
Processor: ATmega328 (i tried ATmega168, but also not working)
Port: Arduino Due Programming Port

01.JPG