So I’m trying to create a new project and I want to create a local Git repository for it. I’m using Xcode 4; I just downloaded and installed the latest version. When I go to make a new project and get to the point where I need to enter a name for my project the “Create local git repository” checkbox it is grayed out. I have already tried to create a symlink to where Xcode thinks Git should be with this command:
sudo ln -s /usr/local/git/bin/git /usr/bin/git
Here is a screenshot:

It’s because there is already a git repository in disk folder (It’s written in your screenshot). If it’s created by mistake, remove it (
.gitfolder in.or..) and try again. Note that you don’t need to provide your own git executable – Xcode4 has it.