Apple did something smart around Xcode 3.2.6 – probably to make it easy to configure gcc to use different SDKs. But, before figuring out what happened, it just brakes your compiler. With Xcode 3.2.6 (and maybe later versions):
sleipnir:~ gt$ cat hello.c #includeint main() { printf("Hello world\n"); } sleipnir:~ gt$ gcc -o hello hello.c -bash: gcc: command not found sleipnir:~ gt$ PATH=/Developer/usr/bin/:$PATH sleipnir:~ gt$ gcc -o hello hello.c hello.c:2:19: error: stdio.h: No such file or directory hello.c: In function ‘main’: hello.c:4: warning: incompatible implicit declaration of built-in function ‘printf’ sleipnir:~ gt$ gcc --sysroot /Developer/SDKs/MacOSX10.6.sdk -o hello hello.c sleipnir:~ gt$