In the Xcode 4.2 GM this is still a problem but you can resolve it by doing the following.
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Switch to the files/folders view in xcode project
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Select your Project ( the blue icon)
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Select your Application under Targets in the middle of the screen.
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Go To build settings
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Find Architectures > Distribution
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Expand this section so you can see both Debug and Release
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Change “Standard (armv7) – $(ARCH_STANDARD_32_BIT)” to “Other…”
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Replace, “Standard (armv7) – $(ARCH_STANDARD_32_BIT)” with “armv6”, then add a new item “armv7”
Remember you may need to do this for all included projects aka frameworks such as TAPKU