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Install Xcode

Installing XCode is straightforward with one caveat. When it asks you about the components to install you need to make sure "Unix Tools" is selected. Other than that just click Continue/Okay/Yes/etc.

Option 1: Install XCode from the Apple App Store (OSX 10.7 Lion or greater)

Option 2: Install XCode from a thumb drive or DVD (OSX 10.6 Snow Leopard)

Option 3: Install Command Line Tools for XCode

Download and install the latest Command Line Tools for Xcode package

Verify your compiler was installed

Type this in the terminal:
gcc --version
Expected result:
i686-apple-darwin11-llvm-gcc-4.2 (GCC) 4.2.1 (Based on Apple Inc. build 5658) (LLVM build 2335.15.00)

Your results might differ somewhat. Basically, as long as it doesn't say something like 'command not found', you're probably cool.