Since there's so much anecdotal information flying around I thought I'd repeat 
this:

On 2011 Jul 05, at 13:00, David Duncan (of Apple) wrote (to xcode-users group):

> 3.2.6 is not supported on Lion. The recommendation would be to install Xcode 
> 4 on your Lion partition, and Xcode 3.2.6 on your Snow Leopard partition.

That being said, primarily because of the lack of User Scripts support in Xcode 
4 which I find intolerable, I'm using Xcode 3.2.5 for my daily work, and of 
course running Lion.  I haven't noticed any problems other than messages being 
logged to the system stderr on various topics, none of which appear to be very 
serious.

However, to be safe, when I want to ship (as I just did), I boot into Snow 
Leopard to do the final build.

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