how to create static lib and include in other xcode projects as well??

I am trying to make static lib but no success. I followed him http://blog.stormyprods.com/2008/11/using-static-libraries-with-iphone-sdk.html but of no use. According to him drag class file in static lib and then delete so what's the point of dragging??

After my lib is generated I am getting error

ld: library not found for -ltestlib
collect2: ld returned 1 exit status
Command /Developer/xcode3.2/Platforms/iPhoneSimulator.platform/Develo开发者_开发技巧per/usr/bin/gcc-4.2 failed with exit code 1

Please help me from scratch as how to generate and use static library using xcode. Thanks.