Revo wrote:
I'm trying to link with libfmodex.dylib.
I have set 'other linker flags' to: -lfmodex
and have set in 'Edit Active Executable - Variables to be set in environment' 'name' as 'DYLD LIBRARYPATH' and 'value' as '/Developer/FMOD Programmers API/api/lib' which is the correct path (I think - I'm not terribly familiar with Unix (Posix paths))

You shouldn't have to mess around with DYLD LIBRARYPATH. That is for inferior operating systems. What you want to do is add '/Developer/FMOD Programmers API/api/lib' to the library search path. In command-line lingo that would be '-L/Developer/FMOD Programmers API/api/lib'. You could also just drag the library file into the Xcode window (or add it via one of the many menu items) and it should set it all up for you.
Keep in mind that the path to the library will be hard coded in the application. Your app won't run on any other computer nor will it run if you alter the path to the dynamic library. If you want, you can include the dynamic library inside your application bundle and then it will always work. I've posted instructions on how to do this.

Is there something I'm missing? Please forgive me, I'm not used to unix. And I'm pretty new to Xcode 3. I come from Windows were everything is dumbed down - set library search path in visual studio, library lib to link to, and you're good to go.

Actually, it really isn't any different in MacOS X. Both systems have pre-defined dynamic library search paths. Had you installed your library into one of those places, your original '-l' would have worked fine. Using that environment variable is an old Unix way to add user search locations for dynamic libraries. You can do the same thing on Windows.