The title here is a little inflammatory but the solution is quite simple and if we all just read the instructions before installing stuff then maybe we could avoid these problems. But just in case someone else runs across this problem the solution is to run the following command (as indicated by apple in their release notes):

ln -s /Developer/Platforms/iPhoneOS.platform/DeviceSupport/3.0
(7A341)/ /Developer/Platforms/iPhoneOS.platform/DeviceSupport/3.0.1

This does assume that you are using the default paths.