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After installing Xcode and I try to open it I get blocked with a message "Scanning for Plug-in failed" and that I may not have appropriate permission..I was logged-in as an administrator. Do I need "root" privileges?

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You do not need root privileges to install any first-party Apple software. Being an administrative user is sufficient. Unfortunately I can't answer the actual error message part of this question. –  Jason Salaz Jan 11 '12 at 21:35
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2 Answers

If you are logged in to the admin account Xcode should open up without issues.

The only reason I can think of for this error would be that the plugin affected was corrupted or failed to install correctly.

You sould remove all xcode files, redownload it and start fresh.

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Something to try if Graeme's answer doesn't work. Restart your computer from the recovery partition (if running Lion) or the gray disk (if not running Lion). Open Disk Utility and run a permissions repair on your startup volume. After this is complete, close Disk Utility and open Terminal from the Utilities menu. Type in resetpassword and select your user account (NOT System Administrator/root) from the drop down menu. Click the Reset button at the bottom of the window in the Reset home folder permissions and ACLs section. Quit the Password Utility and go back to the main recovery screen. On your keyboard, hit Command+Q and restart your computer.

It's very important that you don't hold down the power button to exit the recovery session, or the ACL reset won't occur.

Let us know what happens.

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