I am too much of this Static Libary thing in Xcode 4.X
Following are the steps that I usually do..
1)For making a static libary , I open Xcode , new , static lib
The key to the issue is this part of the error message:
file was built for archive which is not the architecture being linked (i386)
You have imported the library built for the iPhone Device (ARM) by the look of it, and you are trying to use it in the iPhone Simulator which is i386.
What I would recommend is using an Xcode Workspace where the static library project is one of the projects and the iPhone app is another project. This way Xcode will build the library, as required, for Debug/Release and Device/Simulator.