SOLVED!!! Mystery of PINs 0-20 configurations.

Just add this to the GPIOinit() function :

apiRetStatus = CyU3PDeviceGpioOverride(18, CyTrue);
apiRetStatus = CyU3PGpioSetSimpleConfig(18, &gpioConfig);

Make sure you DONOT add anything in the main matrix mapping for the GPIOs else the USB fails to re-enumerate!

 io_cfg.gpioSimpleEn[0]  = 0x00000000; << KEEP THIS ZERO io_cfg.gpioSimpleEn[1]  = DAC_PORTS | 0x00002000 ;
 io_cfg.gpioComplexEn[0] = 0;
 io_cfg.gpioComplexEn[1] = 0; 

ERRORS: Creating your own codes from scratch...??

The problem:

Take gpioApp example and rename it and put it in the same folder as the original - this gives the same general errors about DMA conflicts and other libraries not found.
So TIEs code must have been working but some setup has to be figured out...
For now let me just play around with interface and the TP2 pin. 

Solution:

//in cyfxtx.c it should be... int return type. int
CyU3PDmaBufferFree (
        void *buffer)
// in cy3os.h make sure the function has "extern int" extern int // if its void return then it will give conflicting functions. CyU3PDmaBufferFree (
        void *buffer)

ERROR: TIEs code wont build: Conflicting function

And then if I dumbly comment it out. Gave me more errors! 

LOL. Now what? 

ERROR (SOLVED): Setting Up eclipse!

JUST DOWNLOAD THE CYPRESS version of ECLIPSE form their website and you will be good.