I have seen the simulator timed out thing, and quitting the simulator and 
giving it another chance seemed to help.

Another thing that can cause such messages is if you have not given the app and 
Internal ID. Leaving at at the default text can stop the app from being 
installed. Enter something valid, like "com.rogerguay.appname", where "appname" 
would be the name of this app perhaps, with no spaces.
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