Finally solved..
The problem :/ The damn framework.
I had to add the framework CoreGraphics which is kept in the worst possible location 15 directories below the root directory. I believe this is the worst directory hierarchy ever in programming history..
ONe needs to select the Add the FrameWork "CoreGraphics" to the Project To get all CG functions working which i my opinion is very lame.
It should just be an import of CoreGraphics that should really do the trick. And this has not been mentioned anywhere in the goddamn API documentations.
Ohh Btw u wont find the coregraphics framework if u try searching the directories..best is to open the QuartzDemo project and look that FrameWork "Coregraphics" and open in Finder. Then follow the Directory and u will eventually find it..do the same for ur project.
Not that i have let my anger out....
I think as i am new to MAC OS X its very valid that i found it so hard.
Sorry for any anger venting ...just needed to get it out of my system.
I think that's a bug in Xcode. The active architecture is set as i386, whereas it should be armv6, as in the Project Settings, and consequently when you go to Add a Framework it gives you the wrong damn list.
Thanks for the tip though, you've ended about an hour of wanting to claw my eyes out.