I think this is because the remote debugger could not connect to your application over the phone for any reason. Does your Xcode 3 project have Entitlements.plist with customization get-task-allow? Are you deleting debugging characters? Compiler Optimization? Look through the Organizer window in the console log for your device, and I'm sure you will see errors in com.apple.debugserverif you are sure that you have no other code problems.
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