How to Create the Upload File for Application Loader?

Question

When I use Application Loader, I get to the point where it asks me to "Choose..." the file to be uploaded.

If I understand correctly, it supposes to be the appName.app file I see under "Products" on my app bundle (I right click it and select "Show in Finder" to get to the specific file in library; then I'm supposed to ZIP it and the ZIP file is what I will choose in Application Loader). First, am I correct with this assumption?

if yes...

What should I define different in XCode than the way I used to build the application for testing (on simulator and on my personal iPhone)?

Should I change the Info--->Command-line build use from Debug to Release?

How should I define the Build Settings--->Code Signing section (in which field should I select the "iPhone Developer" option and in which should it be "iPhone Distribution")?

Are there any other important Info/Build Settings/p.list/etc... fields I should relate to?

any help will be appreciated...