This addendum to address a missing step from part 1. According to Apple documentation, static libraries do not need to be code signed. This is only important if you are an "official" Apple iPhone developer ($99/year).
To remove code signing, select the library target under Groups & Files > Targets. Double click the target to bring up the info dialog window. Select the Build pane.
Scroll down to the Code Signing group. It should look something like this: