It is strange that it is not loading on his new iPad 3 since the iPad 3 needs to have iOS 5.1 if I am not mistaken!

The "1 Target" means that in your project file contains one target. You can have multiple targets per project, for example one target for a demo version of your software, the other target for the full version.

The yellow triangle means that you have 11 warnings in your project, but no errors (this would be a red stop sign).

I would set the deployment target to iOS 4.x and the devices option to iPhone/iPad.

How did you send the app to your buddy? Have you signed it? Did you send the provisioning profile with it?