It's 6 am and I spent the whole night trying to get ad-hoc build working. I kept getting signing errors or entitlements missing errors. So I created a new test prj in xcode and compared the .xcodeproj file generated by titanium to the test project's .xcodeproj. And finally toward the end, I hit the missing part! Turns out the titanium isn't generating the CODE_SIGN_ENTITLEMENTS key in the project.xcodeproj file. I opened up the generated .xcodeprj file into a text editor and added this line to the release portion: "CODE_SIGN_ENTITLEMENTS = Resources/Entitlements.plist" (Don't forget to open the Entitlements.plist file and uncheck the 'get-task-allow' option). Did a clean build, dropped it into iTunes and boom! No freaking errors!
I believe that is the reason why titanium isn't adding the line.
Just a note that you do have to create ad-hoc profile from the dev center and do a build from xcode, not titanium. With titanium i kept getting "build not found" errors, even after I updated to 1.3.1, regular non-adhoc distribution compiled fine tho.
Need help on this too, anyone has any detail about this?