FMOD Error in Unity and Xcode when using Simulator

I am able build to my device (iPhone 4) with no problem but I get these errors if I try to use the simulator. I have tried all the various scheme options with no success. If I set the SDK version in unity to iOS Simulator then in Xcode it says that the SDK cannot be found and my only option is iOS Latest which is 7. I have tried changing the target version and the sdk version in unity and in xcode. I have searched and tried everything I can find related to this problem. Any and all assistance is greatly appreciated.

I am currently using Unity 3.5.6f4 and Xcode 5.

In unity I get this error "FMOD failed to initialize default device...(Error initializing output device.)"

These warnings and errors are from Xcode

 ld: warning: directory not found for option '-L"/Users/richarddean/Desktop/ios_Test2"'
 ld: warning: directory not found for option '-L"/Users/richarddean/Desktop/ios_Test2/Libraries"'
 Undefined symbols for architecture i386:
 "_FMOD_OggVorbis_Calloc", referenced from:
 _FMOD_vorbis_synthesis_init in libiPhone-lib.a(block.o)
 _FMOD_floor1_look in libiPhone-lib.a(floor1.o)
 _FMOD_floor1_unpack in libiPhone-lib.a(floor1.o)
 _FMOD_vorbis_synthesis_headerin in libiPhone-lib.a(info.o)
 _FMOD_vorbis_info_init in libiPhone-lib.a(info.o)
 _FMOD_mapping0_unpack in libiPhone-lib.a(mapping0.o)
 _FMOD_res0_look in libiPhone-lib.a(res0.o)
 ...
 "_FMOD_OggVorbis_Free", referenced from:
 __FMOD_vorbis_block_ripcord in libiPhone-lib.a(block.o)
 _FMOD_vorbis_dsp_clear in libiPhone-lib.a(block.o)
 _FMOD_vorbis_block_clear in libiPhone-lib.a(block.o)
 _FMOD_floor1_free_look in libiPhone-lib.a(floor1.o)
 _FMOD_floor1_free_info in libiPhone-lib.a(floor1.o)
 _FMOD_ogg_sync_clear in libiPhone-lib.a(framing.o)
 _FMOD_ogg_sync_destroy in libiPhone-lib.a(framing.o)
 ...
 "_FMOD_OggVorbis_Malloc", referenced from:
 __FMOD_vorbis_block_alloc in libiPhone-lib.a(block.o)
 _FMOD_vorbis_synthesis_init in libiPhone-lib.a(block.o)
 _FMOD_vorbis_staticbook_unpack in libiPhone-lib.a(codebook.o)
 _FMOD_ogg_sync_buffer in libiPhone-lib.a(framing.o)
 _FMOD_ogg_stream_init in libiPhone-lib.a(framing.o)
 _FMOD_mdct_init in libiPhone-lib.a(mdct.o)
 _FMOD_res0_look in libiPhone-lib.a(res0.o)
 ...
 "_FMOD_OggVorbis_ReAlloc", referenced from:
 __FMOD_vorbis_block_ripcord in libiPhone-lib.a(block.o)
 _FMOD_ogg_sync_buffer in libiPhone-lib.a(framing.o)
 _FMOD_ogg_stream_pagein in libiPhone-lib.a(framing.o)
 __fetch_headers in libiPhone-lib.a(vorbisfile.o)
 __bisect_forward_serialno in libiPhone-lib.a(vorbisfile.o)
 
 "DecompressDXT1(int, int, int, unsigned long const*, unsigned long*)", referenced from:
 UnpackBlock(void*, unsigned long, unsigned long, unsigned long*) in libiPhone-lib.a(WiiTextureCompression.o)
 ld: symbol(s) not found for architecture i386
 clang: error: linker command failed with exit code 1 (use -v to see invocation)