Building an iPhone project results in:
Failed to launch simulated application: SpringBoard failed to launch application with error: 7
Maybe this will help: http://discussions.apple.com/thread.jspa?threadID=1605042&tstart=72
I had similar issues when I was trying to install my current development on the iPhone and this information about the AppID fixed it.
For quick reference, the AppID you created when you started creating certificates for development and provisioning of your iphone asked you to create a reverse domain name identifier. Something like: QS32H9XPNE.domain.subdomain.companyname.*
To correctly link up your application to the AppID would require you to set the identifier in the application to domain.subdomain.companyname.application.*
Hope this helps