Xcode 4 unable to create directory (permission denied)

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I am trying to build a plugin using Xcode 4, upon building however I get the following message: /bin/mkdir -p /plugin1.app/Contents error: Unable to create directory: /plugin1.app/Contents (Permission denied)

weirdly enough I haven't set any path as given by the error! Any Ideas?

I have also the following path in my locations (under preferences): /Users/arming/Library/Developer/Xcode/DerivedData

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