IOS Static Library Product is always red
XCode seems to have a bug in this regard when building for the simulator. Build once for device, right-click the library to show in finder, back up a level, and navigate to the simulator one. Your library will be there. (The path will look something like this: /Users/You/Library/Developer/Xcode/DerivedData/LibName-fylbqugtzucxyndtdddrjmbbdnet/Build/Products/Debug-iphonesimulator)
I wasn't able to figure out the answer to this problem but I did find a work around. I installed the XCode 4 project template to build universal frameworks from https://github.com/kstenerud/iOS-Universal-Framework. This allowed me to build a framework which fit my needs.