Here is my solution for Xcode 4.0.2 with SDK 4.3, but I believe that it should work with other settings as well.
libSystem.B.dylib not under /Developer/Platforms/iPhoneSimulator.platform/Developer/SDKs/iPhoneSimulator4.3.sdk/usr/lib however it is present for a lower SDK version (e.g. iPhoneOS4.2.sdk )- most cases of
libSystem.B.dylib is just a symbolic link to libSystem.dylib - so in
iPhoneSimulator4.3.sdk/usr/lib I applied the following command sudo ln -s libSystem.dylib libSystem.B.dylib and my build simulator started working again :)
NOTE: libSystem.B.dylib used by Flurry and Urban Airship, so you better not remove the link in the project file (of course, Urban Airship does not work under Simulator, but I think that other libraries may also need Flurry. libSystem.B.dylib , included in your project.
UPDATE: solution still works for iOS5 Simulator after upgrading to Xcode 4.3
UPDATE, March 9, 2k12: to install Xcode through the App Store, prefix the path above with /Applications/Xcode.app/Contents or the path where you installed Xcode.app.
matm
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