This has been a problem with the Nightly build for several weeks now. This issue is not present in Titanium SDK 126.96.36.199.
Whenever Titanium.Network.HttpClient is used to make a request, an activity indicator appears on the iPhone's status bar and never goes away. You can see the problem by going to Platform -> XHR -> XML Data in the KitchenSink.
The problem is seemingly independent of the particular website being contacted, how long the request takes, or the size of the request. The problem appears on the simulator, iPhone, and iPod touch.
Can anybody else observe this problem?
Yes many of us have seen it.
For instance this link.