At first, I was not able to build a new blank project to iPhone using the new XCode 3.2 beta. I edited the project settings and was able to build the blank app to iPhone simulator.
However, when I open the nib for the project in IB and click the view, it opens an iPad size view.
How do I get the right sized view to work on in IB?
Cmd+I on your project, find the setting containing the string "iPad", change it to "iPhone".
(source: xanga.com)