Robert Harrivo . Do not delete my post without telling me why you deleted it. That's rough.
I ran into the same problem as this question, so I spent my time identifying the problem, reproducing the problem, narrowing it down and explaining as much as I could to prevent this from happening - as well as the general frustration that comes with a problem like this (he hit me on 2 different versions of Xcode in 2 weeks).
If you are going to delete my post, at least take the time to try to answer the question of how I tried to do this.
Now, to the answer that actually says how this problem can be created and how to avoid it.
I just wanted this to create an iOS app. What for? I renamed my target executable.
Just test this by checking out a new copy of the source and rebuild.
The application works fine on my device.
Went to Xcode 4.2, renamed the target. Launch the app. "Error starting executable file ..."
I changed the file name back. The same error.
I removed and started the application again, and it started.
Renamed the application, cleaned it, and ran it again. Not much luck.
Do not rename your application by renaming the target.
This is such a stupid restriction. Apple allows you to rename the target application, but it prevents the launch of your application on the device.
EDIT: I have not tested any code, but now I can not test and create and run any application without this. How do you get the / xCode device from this state as soon as you receive it?
Even the application now crashes when launched in int retVal = UIApplicationMain (argc, argv, nil, nil);
This is in Xcode 4.2 on Snow Leopard, but I ended up in the same state with Xcode 3 on another machine last week.
Edit 2: reboot device, reboot my Mac. Built and launched in the simulator first and then on the Gen4 iPod touch. He works.