Make sure you have all the properties as below:

<?xml version="1.0" encoding="UTF-8"?>
<application xmlns="http://ns.adobe.com/air/application/2.0">
    <id>com.example.HelloWorld</id>
    <filename>MobileDesigner</filename>
    <name>Hello World</name>
    <version>v1</version>
    <initialWindow>
        <renderMode>gpu</renderMode>
        <content>HelloWorld.swf</content>
        <fullScreen>true</fullScreen>
        <aspectRatio>portrait</aspectRatio>
        <autoOrients>true</autoOrients>
        <visible>true</visible>
    </initialWindow>
    <supportedProfiles>mobileDevice</supportedProfiles>
    <icon>
<!--        <image29x29>icons/icon29.png</image29x29> -->
        <image57x57>Icon_57.png</image57x57>
<!--        <image512x512>icons/icon512.png</image512x512> -->
    </icon>
    <iPhone>
        <InfoAdditions>
            <![CDATA[
                <key>UIStatusBarStyle</key>
                <string>UIStatusBarStyleBlackOpaque</string>
                <key>UIRequiresPersistentWiFi</key>
                <string>NO</string>
            ]]>
        </InfoAdditions>
    </iPhone>
</application>

Another tip is to not draw any graphics or UI in your main Sprite’s constructor. Instead create another method and do any drawing there.

package
{
	import flash.display.Sprite;
	import flash.display.StageAlign;
	import flash.display.StageScaleMode;

	[SWF(width="320", height="480", frameRate="12", backgroundColor="#FFFFFF")]
	public class HelloWorld extends Sprite
	{
		public function HelloWorld()
		{
			super();

			this.stage.scaleMode = StageScaleMode.NO_SCALE;
			this.stage.align = StageAlign.TOP_LEFT;

			init();
		}

		private function init():void
		{
			var funk:Sprite = new Sprite();
			this.addChild( funk );
			funk.graphics.beginFill( 0xFF0000 );
			funk.graphics.drawRect( 0, 0, 360, 480 );
			funk.graphics.endFill();
		}
	}
}

Hope that helps!

The latest version of ELIPS Studio has just been released. It brings the ability for developers to create native mobile apps in ActionScript and Flex for mobile devices running Google’s Android platform.

With this new release, developers can now address all major smartphone platforms (iPhone, Android, Symbian, Windows Mobile) from a single code base using powerful web 2.0 languages and technologies from Adobe.

The next version of ELIPS Studio will bring the support of MacOSX as desktop development platform.

If I were Adobe I’d buy French OpenPlug toute suite and turn ELIPSE studio into AIR Mobile (or Mobile AIR).