I am trying to install Xcode 4.1 GM on my Lion mac but it\'s not working. When it is almost finished, I get the popup to quit iTunes even though it is already quit. So the
Looks like you've solved the install problem. It's not a solution per se, but setting Xcode to run in 32-bit mode fixed the crashing problem for me.
It's too early to say what the trade-off is (if any), but whatever it is, it's bound to be better than not being able to use it at all.
On a side note: please accept Phil's answer since he gave the correct solution to your original problem. C: