First of all thanks for all of the free flowing information. Its ridiculous that we have to jump through hoops to get something relatively simple like this to work. But the community spirit definitely is making things a lot more tolerable
Anyways, I followed some of the suggestions on here, and was still having problems with not being able to build.
I was getting the ApplicationVerification issue stated above. The thing was, my provisioning profiles were fine.
I hand ported fresh downloads of the provisions over to the provision directory, I created a new project, copied my files over, and it still failed. The provisions always seemed fine.
1) I have not EVER EVER EVER seen the field for Code Signing Provisioning Profile field. EVER. I have no idea where it is. Oh well

2) I have been able to build previous projects without this field.
What did it for me (or I should say what I " believe" fixed it, like people have said, this is voodoo) was to
1.Get Target Info, Build Tab
2. Under Build Locations, I changed the Base SDK field to Device - iPhone OS 2.0 (from OS 2.2).
What this did (in addition to changing the base SDK) was create an entry under the Code Signing section - Code Signing Resource Rules Path.
This was blank under OS2.2. Under 2.0 it now says iphoneos2.0/ResourceRules.plist
The ResourceRules.plist file was also created in
/Developer/Platforms/iPhoneOS.platform/Developer/Library/Xcode/File Templates/Code Signing/Resource Rules.pbfiletemplate
The file contains very little, but I think it may help the Code Signing step point to Info.plist file properly:
Code:
<?xml version="1.0" encoding="UTF-8"?>
<!DOCTYPE plist PUBLIC "-//Apple//DTD PLIST 1.0//EN" "http://www.apple.com/DTDs/PropertyList-1.0.dtd">
<plist version="1.0">
<dict>
<key>rules</key>
<dict>
<key>.*</key>
<true/>
<key>Info.plist</key>
<dict>
<key>omit</key>
<true/>
<key>weight</key>
<real>10</real>
</dict>
<key>ResourceRules.plist</key>
<dict>
<key>omit</key>
<true/>
<key>weight</key>
<real>11</real>
</dict>
</dict>
</dict>
</plist>
Like I said, I'm not sure if this is what did it for me, but it appeared to. Hopefully this helps at least one person