How do I use Application Loader to submit iPhone App?!

[TechnoEagle]

I have gone through all the steps in iTunes Connect to submit my app, and now it says the status is 'Waiting for Upload.' I opened Application Loader, chose my app from the list, and it prompts me to browse for the app on my computer.
What I am having trouble with is choosing what file it needs. Everything within the project folder is grayed out. I read somewhere that I need to create a zip file, but I am unsure of what to zip up (my entire project folder or just one or two files).
If someone has experience with Application Loader, I would really appreciate some help!

[SoulRed12]

Go to Xcode, load up your app, and switch it to the distribution build settings (which I assume you've already done). Choose clean all targets, and then when it's done, choose "build" (but NOT build-and-go). When it's done building, right click "[your app name].app" in the "Products" folder in the resources window (on the left side of Xcode), and select "reveal in finder". Once finder comes up, right click the build ("[your app name].app") and choose archive. The zip archive you just created, is what you upload with app loader.