I got help from Pete Hodgeson on this. Here is the post on this google group
This is what Pete Suggested for me:
This is a fairly common project setting issue I think. You should be able to resolve it by modifying the build settings for your Frank-Fruitstrap target. Either change "Build Active Architecture Only" to "No", or add "arm7" to the "Valid Architectures" list.
I did the latter and it worked.