Iphone App release Build Icon crossed

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hi I am having trouble debugging my app on my device and also when I try to build it on release mode, the application file has a some crossed image overlapping on it and the whole icon is lightened in color. however when i install it on my device it works fine. why is this happening?

also when I try to debug my app in the debug mode it troughs a permission denied error. some message with entitlement data missing ins displayed. what can i do to fix this?

XCODE 3.2.5 and latest 4.2 sdk, I have tried jailbreaking my iphone and did some hacking stuff to get around developer membership before but i have reinstalled the new 3.2.5 with 4.2 recently and have a valid developer membership now.

please help! thanks in advance

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The "crossed out" icon is normal - it's Mac OS telling you it can't run the file, which is expected since it's made for the phone and not the desktop.