When building the app I added the valid architectures architecture as armv6, armv7, armvs7 and architectures as standard architecture (armv7 and armv7s). Also switched the build active architecture only to NO. Adhoc installation hangs with the status installing message (attached screenshot). I have added the UDIDs properly and was successfully able to push builds like this to those devices prior to iOS 7. This is reproducible with 4 devices so I believe this is something to do with the way I am building this. All the phones uses latest iOS 7.0.2. Additionally I tried to make the target os to iOS 7 and added arm64 to valid architectures. Still no luck.
Please note that since iOS7 apple blocked API access to UDID.
In other words: the applications formly used to send UDID no longer valid, and you should use iTunes to find out your and your friends UDID.