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Simply plug your device into your computer using the USB cable that comes with your device. Follow the steps in Recipe 1.4 to make sure you have selected the right project in Xcode. Instead of choosing the simulator (as shown in Recipe 1.4) in the Scheme breadcrumb button, choose your device, go to Product, and press Run.
Each version of Xcode supports a series of iOS versions. By support I mean that the latest version of Xcode, for instance, may not be capable of compiling and running an iOS app on a second generation iPod touch with iOS 3.0 installed on it. The reason is that the utilities built for each version of Xcode allow you to run your iOS apps on a limited number of versions of iOS on devices. The same is true for iOS Simulator. If you download the latest version of Xcode, you will notice that you might only be able to simulate your apps on iOS Simulator 5.0 and nothing before that.