I'm successfully using Hudson on the mac with xcodebuild. With the release of the 3.0 iPhone sdk you have compete control over the target, configuration and sdk that the project is to be built against.
It's as simple as creating a build step in hudson and telling xcodebuild to build the project:
xcodebuild -target "myAppAppStore" -configuration "DistributionAppStore" -sdk iphoneos2.1
The upfront work has paid off for me as my builds just work without any additional thought. I've written a detailed description on my blog if anyone is interested.
iPhone app distribution made easy
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