This is the log:

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Appcelerator Titanium Diagnostics Build Log
The contents of this file are useful to send to Appcelerator Support if
reporting an issue to help us understand your environment, build settings

and aid in debugging. Please attach this log to any issue that you report.

Starting build at 11/09/10 17:05

Build details:

timestamp=09/20/10 15:21
version=1.4.1.1
githash=8a222e

Script arguments:
/Library/Application Support/Titanium/mobilesdk/osx/1.4.1.1/iphone/builder.py
simulator
"4.0"
"/Users/alexander2/Desktop/Titanium/HelloWorldiPhone"
com.helloworldiphone.com
"HelloWorldiPhone"
iphone

Building from: /Library/Application Support/Titanium/mobilesdk/osx/1.4.1.1/iphone
Platform: Darwin Kernel Version 10.3.3: Wed Apr 7 20:48:41 PDT 2010; root:xnu-1504.6.1~3/RELEASE_I386

Exception detected in script:
Traceback (most recent call last):
File "/Library/Application Support/Titanium/mobilesdk/osx/1.4.1.1/iphone/builder.py", line 401, in main
xcode_path=run.run(["/usr/bin/xcode-select","-print-path"],True,False)
File "/Library/Application Support/Titanium/mobilesdk/osx/1.4.1.1/iphone/run.py", line 7, in run
proc = subprocess.Popen(args, stderr=subprocess.STDOUT, stdout=subprocess.PIPE)
File "/System/Library/Frameworks/Python.framework/Versions/2.6/lib/python2.6/subprocess.py", line 595, in init
File "/System/Library/Frameworks/Python.framework/Versions/2.6/lib/python2.6/subprocess.py", line 1106, in _execute_child
OSError: [Errno 2] No such file or directory

However, on SDK 1.2.0, There is a little progress, but, still the build breaks.

Log:
[INFO] Compiling JavaScript…one moment
[INFO] No JavaScript errors detected.
[INFO] One moment, building …
[INFO] Performing full rebuild. This will take a little bit. Hold tight…
[DEBUG] copy resources from /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/Resources to /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/build/iphone/tmp
[DEBUG] copying: /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/Resources/app.js to /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/build/iphone/tmp/app.js
[DEBUG] copying: /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/Resources/default_app_logo.png to /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/build/iphone/tmp/default_app_logo.png
[DEBUG] copying: /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/Resources/KS_nav_ui.png to /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/build/iphone/tmp/KS_nav_ui.png
[DEBUG] copying: /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/Resources/KS_nav_views.png to /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/build/iphone/tmp/KS_nav_views.png
[DEBUG] copying: /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/Resources/iphone/appicon.png to /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/build/iphone/tmp/iphone/appicon.png
[DEBUG] copying: /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/Resources/iphone/Default.png to /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/build/iphone/tmp/iphone/Default.png
[DEBUG] copy resources from /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/Resources/iphone to /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/build/iphone/tmp
[DEBUG] copying: /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/Resources/iphone/appicon.png to /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/build/iphone/tmp/appicon.png
[DEBUG] copying: /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/Resources/iphone/Default.png to /Users/alexander2/Desktop/Titanium/HelloWorldiPhone/build/iphone/tmp/Default.png
[DEBUG] compile checkpoint: 2.17 seconds
[INFO] Executing XCode build…
[INFO] Executing XCode Compiler [toggle output]
[INFO] Compile completed in 7.431 seconds
[ERROR] Build Failed. Please see output for more details