I followed your steps and added the Entitlements.plist file to my project. I also added the get-task-allow field and set it to a boolean and unchecked the box. I go to build
After installing xCode 4 I had this problem this morning with an iPhone running 4.2.1 that I had last worked with well before I did the xCode upgrade.
After fumbling a bit I got the error to go away by clicking the refresh button for the device in the Organizer - Devices.
Go to Devices in the Organizer, then select Provisioning Profiles, then select the device and click the Device Provisioning Refresh button at the bottom of the page.
Worked for me.