As Programmable SoC devices such as Altera Excalibur and Xilinx Virtex II Pro proliferate, more designers are now facing the challenge of integrating hardware and software design. This paper describes software-compiled system design, a methodology supporting the design of electronics containing high-density programmable logic and microprocessor architectures. To enable hardware and software design convergence, this methodology includes C-based design descriptions, hardware/software co-design partitioning and analysis, multi-level and multi-language co-verification, and direct compilation to programmable logic. The paper presents a practical implementation of this methodology using the DK Design Suite of tools as well as a design example employing a JPEG2000 algorithm.