- I have the latest and greatest iOS SDK installed and it came with Xcode 3.2.6
The latest and greatest ships with Xcode 4.x. iOS 4.x ships with 4.0 while iOS 5.0 ships with 4.2.
Xcode is my only other thought at this point. For some reason the Arduino environment is not seeing the path to the correct copy of gcc. (Arduino ships with GCC for ATmega, while Xcode contains GCC for Cocoa/iOS.)
For what it is worth (which is probably not worth much to you if yours isn't working grin), I have Arduino 0022 and Xcode 4.2 with no problems compiling.
Okay, one more idea.
If you run "java -version" on the command line, what do you get back? I get:
James-MBP2b:~ james$ java -version
java version "1.6.0_24"
Java(TM) SE Runtime Environment (build 1.6.0_24-b07-334-10M3326)
Java HotSpot(TM) 64-Bit Server VM (build 19.1-b02-334, mixed mode)