Titanium Developer just does nothing when I try to Run Emulator on Android or iPhone. Android emulator runs but nothing happens. This is what I see in trace:

DEBUG] compressing: /Users/hackett/Documents/code/titanium/hello_world/hello world/build/android/bin/assets/Resources/app.js
[TRACE] Traceback (most recent call last):
[TRACE] File "/Library/Application Support/Titanium/mobilesdk/osx/1.1.0/android/builder.py", line 714, in
[TRACE] s.build_and_run(False,avd_id)
[TRACE] File "/Library/Application Support/Titanium/mobilesdk/osx/1.1.0/android/builder.py", line 490, in build_and_run
[TRACE] output = run.run([aapt, 'package', '-m', '-J', src_dir, '-M', android_manifest, '-S', res_dir, '-I', android_jar])
[TRACE] File "/Library/Application Support/Titanium/mobilesdk/osx/1.1.0/android/run.py", line 5, in run
[TRACE] print "[DEBUG] %s"%(" ".join(args))
[TRACE] TypeError: sequence item 0: expected string, NoneType found

iPhone is similar in that the emulator starts but nothing happens. Titanium then also crashes. When I restart Titanium then also sometimes will not populate the Test & Package tab for any app.

More info:
Mac OSX 10.5.8
Titanium Developer 1.0
Trying a "new" project and Kitchen Sink, both do the same things.
Did a fresh install, cleared /Applications/Ti and /Library/Application Support/Ti

Thanks in advance!