Application on iPhone does not work

[devbox]

Hello!
I am a novice in development for iPhone.
I use iDeneb (Leopard) on PC and Xcode 3.1.4. My first application is "Hello World". It works fine on iPhone simulator. Also my project creates additional IPA file for my application during compilation. I can install this IPA file on my iPhone via iTunes, but application does not work. What I am missing? Can I test my application on real device without purchasing developer program ($99) from Apple?
Any help will be appreciated!!!
Thank you.

 

[flyingember]

Did you install the program via the tethered testing manner?

If you did it via itunes it's not going to run since it wasn't purchased via the itunes account the phone is running apps under