I am using the Xcode 4.2. I did not able to see any method to add Entitlements.plist in this version. So how can i do add that file in my project since i need to install my app on iPhone.
Select the target in your project and scroll down. You'll see the option to add a custom entitlement.
For creating a new entitlement, just create a new plist file from new file menu item. Change it's type to iPhone entitlements as shown below.