When Apple releases a new version of iOS they often seem to also include some small fixes and enhancements in an update to Xcode. The release of iOS 4.2 was no different in that it was accompanied by Xcode 3.2.5.
One minor change that I think is worth mentioning is the ability to set the base SDK to the “Latest iOS” version. Usually after an SDK version update you need to manually update the base SDK version of each project. The first time you open an existing project after upgrading Xcode will complain that it cannot find the base SDK:
With Xcode 3.2.5 you can go into the project settings and specify the base SDK for all configurations to be the latest iOS version:
Hopefully this means that when Apple ships iOS 4.3 it will not be necessary to manually change the settings for each project. Not exactly life changing but a small improvement all the same.
One further comment, I have found that in projects with multiple targets you may also need to change the Base SDK setting for each target individually: