A newer (and more powerful) way to make a "single library file that covers both the simulator and the device":
Build a live static library (device + simulator) with Xcode and SDK 4+
(I wrote one of the posts mentioned in the accepted answer, which was valid for Xcode3 at the time, but Apple intentionally broke it with later versions and did not offer an alternative. So, we ended up with the SO / answer question above)
Adam
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