Intel Mac Compile Errors & Cant run Debug mode

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I imagine the demo is PPC only (can't imagine they've got around to compiling an Intel version of it yet).

I expect that PPC max tries to get intel-XCode to compile up some PPC assembler and it borks.
The reason pre-compiled apps work fine are because of the Rosetta emulator.

Since you seem to be using max already, couldn't you just download the latest full-version intel-Max and try that?