MonoMac Create Mac Installer results in mono merge with error. CONTINUOUS EXCLUSION

I am using MonoDevelop 2.8.8.4 and MonoFramework (MDK) 2.10.9_8. I am also using Mac OSX Lion 10.7.3 and have XCode 4.3.1 installed for Lion SDK. My MonoMac app works great when debugging with MonoDevelop. Then I tried to create Application Bundle by going to Project -> Create Mac Installer ...

"Enable Mono in Bundle App" checked

Linker: set to "Do not link to assemblies"

Everything else is unchecked and grayed out.

When I click Create Package, then Save, MonoDevelop starts building the package, but then it fails with:

Unhandled Exception: System.ComponentModel.Win32Exception: ApplicationName='gcc', CommandLine='-mmacosx-version-min=10.5 -m32 /tmp/monomac-build-634690657739224650/AboutToBlowUpDemo.app/Contents/MacOS/driver.m -o /tmp/monomac-build-634690657739224650/AboutToBlowUpDemo.app/Contents/MacOS/AboutToBlowUpDemo -D_THREAD_SAFE -I/Library/Frameworks/Mono.framework/Versions/2.10.9/include/mono-2.0   /Library/Frameworks/Mono.framework/Versions/2.10.9/lib/libmono-2.0.a -framework AppKit -liconv', CurrentDirectory=''  
  at System.Diagnostics.Process.Start_noshell (System.Diagnostics.ProcessStartInfo startInfo, System.Diagnostics.Process process) [0x00000] in <filename unknown>:0   
  at System.Diagnostics.Process.Start_common (System.Diagnostics.ProcessStartInfo startInfo, System.Diagnostics.Process process) [0x00000] in <filename unknown>:0   
  at System.Diagnostics.Process.Start (System.Diagnostics.ProcessStartInfo startInfo) [0x00000] in <filename unknown>:0   
  at MonoMac.Bundler.Driver.RunCommand (System.String path, System.String args, System.String[] env, System.String& output) [0x00000] in <filename unknown>:0   
  at MonoMac.Bundler.Driver.Compile () [0x00000] in <filename unknown>:0   
  at MonoMac.Bundler.Driver.Main (System.String[] args) [0x00000] in <filename unknown>:0   

[ERROR] FATAL UNHANDLED EXCEPTION: System.ComponentModel.Win32Exception: ApplicationName='gcc', CommandLine='-mmacosx-version-min=10.5 -m32 /tmp/monomac-build-634690657739224650/AboutToBlowUpDemo.app/Contents/MacOS/driver.m -o /tmp/monomac-build-634690657739224650/AboutToBlowUpDemo.app/Contents/MacOS/AboutToBlowUpDemo -D_THREAD_SAFE -I/Library/Frameworks/Mono.framework/Versions/2.10.9/include/mono-2.0   /Library/Frameworks/Mono.framework/Versions/2.10.9/lib/libmono-2.0.a -framework AppKit -liconv', CurrentDirectory=''  
  at System.Diagnostics.Process.Start_noshell (System.Diagnostics.ProcessStartInfo startInfo, System.Diagnostics.Process process) [0x00000] in <filename unknown>:0   
  at System.Diagnostics.Process.Start_common (System.Diagnostics.ProcessStartInfo startInfo, System.Diagnostics.Process process) [0x00000] in <filename unknown>:0   
  at System.Diagnostics.Process.Start (System.Diagnostics.ProcessStartInfo startInfo) [0x00000] in <filename unknown>:0   
  at MonoMac.Bundler.Driver.RunCommand (System.String path, System.String args, System.String[] env, System.String& output) [0x00000] in <filename unknown>:0   
  at MonoMac.Bundler.Driver.Compile () [0x00000] in <filename unknown>:0   
  at MonoMac.Bundler.Driver.Main (System.String[] args) [0x00000] in <filename unknown>:0   

      

        
        
        
      

    

mmp exited with code 1

Merge Mono failed

I've also tried every other combination in the Create Mac Installer ... window, but I always get the same error. Can anyone tell me what I am doing wrong?