SOLVED: "file not found .../libkobold2d-ios.a" issue is caused if Xcode Build Location is set to the non-recommended setting Locations Specified by Targets (Xcode 4.3: Legacy). This problematic Xcode setting is now detected by Kobold2D during build and will alert the user to the issue to provide a quick fix and the recommended solution.
Minor Improvements & Bug Fixes
KKInput: fix touches never being in "moved" phase
Kobold2D Project Upgrader: fixed one issue that may have caused upgradeable projects not to be found
Kobold2D Project Upgrader: logs .txt file where it looks for Kobold2D projects and how it decides to include them or not (will help debugging in case the above issue persists)
Installer: tryfix of permission issue after installing (user has no write permission in Kobold2D folder). If still happening try running sudo pkgutil --repair com.kobold2d (for 1.0.2) respectively sudo pkgutil --repair com.kobold2d.1.0.4 depending on version.
Installer: prevent installer from removing previous version's files by changing the package id to contain the version number (ie com.kobold2d.1.0.4).
iSimulate: disabled in template projects by default. Edit BuildSettings-iOS.xcconfig to enable iSimulate by uncommenting the OTHER_LDFLAGS line referencing (force-loading) iSimulate. This is to avoid the "incoming network connection" warning dialog caused by iSimulate which may be confusing or even deterring new users.
Cocos3D: fixed a compiler error in CC3PODResources in Xcode 4.3 (missing cast)
replaced donationware kobold.ttf font with completely free Ubuntu font
KKAdBanner: if you enable ads you should also enable AutorotationType = Autorotation.UIViewController in config.lua so that ads are rotated correctly.