Since my iphone OS got upgraded to iOS 4, I had to upgrade my Xcode as well… I just installed the latest Xcode 3.2.3 from xcode_3.2.3_and_iphone_sdk_4__final. It took out my previous SDK versions, and now I only have 3.2 and 4.0 left.

It took me a while to fix all the framework paths. For your convenience, right click on a red framework, then choose General, for Path Type choose Absolute Path, then navigate to the following path to re-select your framework paths.
/Developer/Platforms/iPhoneOS.platform/Developer/SDKs/iPhoneOS3.2.sdk/System/Library/

Then when I got to the itunesconnect submission page, I got the following error message:

The binary you uploaded was invalid. An application targeting the iPhone device family may not require a iPhone OS Deployment Target of 3.2, which is an iPad-only OS.

Very puzzling as always… After trying things here and there, I settled by changing the Base SDK to iPhone Device 4.0. This may not be a good choice if you want to support old iphones, but it’s one way to submit an app update…

Hope this could save you some time on that error message.