"Your mobile device has encountered an unexpected error (0xE800003A) during the install phase: Verifying application"
This was due to the fact I'd failed to download the new SDK, even though my iTouch had automatically been upgraded via iTunes. The original bundle had been developed for iPhone OS 2.0 while the debug device was running under OS 2.2. Downloading the new version of the SDK from Apple addressed the issue.
The problem I have with this is that the new SDK is over 1Gb in size! Its hard to believe I'll have to download that much each time there is a new update to the Framework.
