I finally decided to upgrade my iPhone to iOS 5 today. The upgrade process was pretty smooth, but once it was done, I was no longer able to run the apps from XCode. I kept getting the no provisioned ios devices are available with a compatible ios version error.
Turned out that all I had to do was to go to Window->Organizer and, from the Devices pane, select my iPhone and click on Use this phone for development.
Easy solution, but was not immediately obvious to me