Just installed the latest SDK for iPhone 2.1. When I go to File -> New Project in Xcode, under the iPhone OS Application selection, I don't see a template icon for "Cocoa Touch Application". Am I missing something? Anything else I need to download other than the iPhone SDK? If not, how do I add it to the "iPhone OS Application" templates?
You shouldn't need to add any templates, this is what happens by default.
The closest thing to a normal Cocoa Touch application would be the Window-Based application as it gives you a window and a delegate...
The others, like Martin said, have different styles already applied to them... OpenGL, Navigation Controllers, Views, etc.