Having this problem in the CADE lab?
Error from Debugger: Failed to launch simulated application. iPhone Simulator failed to install the application.
This error is caused by the fact that your home folder is NFS mounted, and that is where your iPhone Simulator OS files live. To fix it:
1. Go to "/home/yourusernamehere/Library/Application\ Support/"
2. Delete "iPhone Simulator"
3. Open "scratch disk" on your desktop
4. Create a folder called "iPhone Simulator"
5. Launch Terminal and type (without pressing enter yet): ln -s
6. Drag the "iPhone Simulator" folder from the scratch disk to the terminal window. This will paste it's path there.
7. Type: ~/Library/Application\ Support/iPhone\ Simulator
8. If the line looks something like "ln -s /Volumes/scratch\ disk/iPhone\ Simulator ~/Library/Application\ Support/iPhone\ Simulator", press enter
This should create a symbolic link from the location where the iPhone Simulator OS's files live to a local directory on the CADE machine you are using. When it then goes to create it's directory structure the next time you click "Build and Go", it will put all the files on the local scratch disk. Images of this process follow. Good luck!