If I invoke Xcode from the terminal as such:
$ /Developer/Applications/Xcode.app/Contents/MacOS/Xcode
I can definitely build without copystrings errors. However, if I start Xcode from the Finder by clicking on the Xcode icon in /Developers/Applications folder or clicking from my dock, then copystrings fail when I do a build.
When I invoke Xcode from the shell, I'm running in user "jim" context. When I click start using Finder, am I running in user "jim" context?
In any case, if I invoke Xcode from the shell instead of starting it from Finder, then Xcode works the way it should! Now I can enjoy Xcode just like the rest. :) This is definitely one step better than my previous work around which was cut&paste the copystrings build output and invoke manually from shell.
I'm just curious though why Xcode would have different behavior.