So, for some reason, running network code to download a file in the Corona simulator is fine, it works. Building for XCode simulator fails to make a connection, but building for device, installing and running it works fine.

Does anyone know why this is?

I'm talking about the most basic network test - simpler than the sample code, but that too. On a normal home cable internet connection etc etc etc.

We expect it to work the same way assuming your Mac's network configuration is valid and not fire walled off or something. We have several unit tests that test our async http stuff which we run on Mac, iOS device, and the Xcode simulator. We have noticed some behavior differences in iOS 5, but I would expect the device and simulator to behave the same way.