I don’t know if this is the same situation, but it can help. My iPhone was in firmware 4.0.2, but my Xcode SDK was for firmware 4.0.1. Usually Xcode complains that I will need to upgrade to a new Xcode that supports 4.0.2, this time it is not.
I hit my head about why breakpoints could be set, but the debugger did not stop at my breakpoint (the breakpoints were orange - signaling that the characters were not loaded). I decided to restart my iPhone, and now Xcode showed a warning (when it was not before). Switching to Xcode for 4.0.2, of course, fixed my problem. So, maybe your Xcode is not updated for a newer firmware?
Shazron
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