1. Create a folder called Payload
2. Place the .app folder inside of that
3. Zip up the Payload folder using normal compression
4. Then rename the file with a .ipa extension
*Note: If you want the app's artwork to appear in I-Tunes, you need to place a file called iTunesArtwork (make sure there are NO extensions) into the zip file on the same level as the Payload folder. Not inside of it. It is actually a .jpeg file of a 512x512 image that will apear in I-Tunes. This is not mandatory, but there just wont be an icon for the app in I-Tunes.
2. Place the .app folder inside of that
3. Zip up the Payload folder using normal compression
4. Then rename the file with a .ipa extension
*Note: If you want the app's artwork to appear in I-Tunes, you need to place a file called iTunesArtwork (make sure there are NO extensions) into the zip file on the same level as the Payload folder. Not inside of it. It is actually a .jpeg file of a 512x512 image that will apear in I-Tunes. This is not mandatory, but there just wont be an icon for the app in I-Tunes.