So I have figured out that in XCode 4.3, to create a new ViewController, I have to do New > Objective-C Class, then subclass UIViewController. But, how come the xib checkbox is greyed out? How do I create a new view controller with an xib?

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It looks like you’re trying to add an OS X Objective-C class to an iOS project
which produces this..
Instead add the new file like this..
which produces this..