Is it possible to do this in such a way that the parent project does not need any settings that refer to the sub-library -- only to the parent library?
(For example, I want header search paths to be picked up automatically).
I think you are looking for a Framework, not actually a static library ( You will always need the symbol references aka headers when you use static libraries )
The solution that Apple gave us, is Frameworks.
You can checkout this GitHub project which contains an Xcode 4 template for creating iOS frameworks again.
Good luck!
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