The dropdown in XCode shows a base SDK of 3.2, but my iPod Touch (2nd generation), running OS 3.1.3, will run the app just fine in debug mode. (Command + Return/Enter)

What is the actual base SDK of my iPhone/iPod touch version of the app and how can I change this? Changing it by right clicking on the project name in the "Groups and Files" pane and changing "Base SDK" under the "Build", doesn't do much.

Edit:

While writing this question, I found that scrolling down in "Build" and changing "iPhone OS Deployment Target" seems to be what I'm looking for, I'm posting this anyway. Perhaps someone has more insight into this...