iOS SDK 3.1.3 iTunesConnect upload error

I'm getting the following error when I upload my binary to iTunes Connect:

• When supporting iPhone, the executable must include support for the armv6 architecture, unless the UIRequireDeviceCapabilities include the 'armv7' capability.

I'm using the iPhone 4.0 SDK with the Target's values below

1) Architectures = Standard (armv6 armv7)
2) Valid architectues = armv6 armv7
3) iPhone OS Deployment Target = iPhone OS 3.1.3

In the upper left hand corner of XCode when I click on the bar there it has
Valid Architecture:
(no check) armv6
(checked) armv7

If instead of armv7 in Valid Architecture I check armv6, I get the dreaded 12-bit ldr error:

• Ldr 12-bit displacement out of range (4744 max out of +/- 4096) in _AudioQueueAddProperty Listener

Any idea what is causing this?