I have a question about this: "iPhone SDK for iPhone 3.0 can not be used for submitting iPhone OS 2.2.1 applications to the App Store." So I can't use the 3.0 sdk to submit a 2.2.1 application, even if I select iPhone 2.2.1 when building it?
I guess, but keep in mind that iScreamer! was started on the 2.2.1 SDK, so I don't know what would happen if you started on 3.0...
You just cant submit apps with 3.0 APIS. If like WellSpentYouth had the settings to 2.2.1 you're fine
From my experiences, you need to make sure that your project is set to use the 2.2.1 SDK or older SDKs. Simply not using the 3.0 APIs are not enough since many of the existing ones are either changed, or partically deprecated. The developer site has complete documentation on these changes and additions to make life a whole lot easier!