I recently upgraded my XCode SDK to version 3.1.3 and my iPhone OS to 3.0. It is important to note that everything was working fine when I had OS version 2.2.1 in my iPhone. My iPhone Touch device is not jailbroken and I have a valid provisioning profile in the organizer which is linked to my iPhone Touch however it has a yellow circle next to it. I recently upgraded my XCode SDK to version 3.1