OK, tonight we finally just figured out what has been causing Titanium Developer to crash. In fact, it was related to more 3.2 SDK related problems on our end. We have been able to rebuild the iphonesim binary using the correct parameters to allow it to run on 32-bit, 64-bit and on both 10.5 and 10.6 — all in one universal binary.
If you are experiencing this problem, please download the patched iphonesim binary until we do a full update. You should save this file into the directory /Library/Application Support/Titanium/mobilesdk/osx/1.1.2/iphone. You do not need to restart Titanium Developer.
Note, it appears this issue is only related to 10.5. If you’re on 10.6, you should not have experienced this issue. Just as a future reference, in order to move to iPhone 3.2 SDK (and iPad), you’ll need to be prepared to move to Snow Leopard. It appears Apple no longer supports 10.5 with the move to 3.2.
Sorry for all of the issues around this.