You should be able to test from Xcode but you need a separate build config that doesn't include the arm64 architecture. iOS 5.1.1 devices don't know what to do with a 64 bit slice. The App Store performs some magic on the binary to make the 64 bit slice invisible to the device, but Xcode doesn't know how to do that. So you have to build a version without the 64 bit slice for testing directly from Xcode (or for ad hoc distribution for that matter).
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