iPhone Simulator: SpringBoard failed to launch application with error: 7

Question

Building an iPhone project results in:

Failed to launch simulated application: SpringBoard failed to launch application with error: 7

Answer 1

I had the same problem.

It happens as follow...

I had a folder storing images in some sub-folders.

If I add the root image folder as "directory", I receive this error.

If I add the root image folder as "group", simulator runs fine.

weird...