Iphone sdk not installed error while installing phonegap template

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I recently installed iPhone SDK on my Mac OS X 10.5 VMWare. I have iPhone SDK 3 installed on the vmware image. I planned to learn Phonegap development and so started to install the 'PhoneGap Template' for iPhone applications.

But when I start the installation, I get the error saying iPhone SDK not found. I already have installed the iPhone SDK, then why am I getting this error.

Can anybody help me?

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