SQLite database on iPhone

I done all my development for my SQL on the simulator, and I have my app writing and reading from my DB seamlessly.

In fact, very few lines of code go quite far. In my Apple computer I am able to find my database and verify that all is working properly (under library/application support/iphone simulator/user/applications/myapp/documents)

BUT...

I know have moved the identical code to the iphone, and my app is UNABLE to read my database for its default configuration.

My code to find the DB in question comes from the Apple demos:

NSArray *paths = NSSearchPathForDirectoriesInDomains(NSDocumentDirectory, NSUserDomainMask, YES);
NSString *documentsDirectory = [paths objectAtIndex:0];
NSString *path = [documentsDirectory stringByAppendingPathComponent:@"MyDB.sql"];

Questions:
1) When I "build" my app for the iphone, and not the simulator, and my default DB is part of my project, is it copied to the iphone?
2) How can I see where it goes?
3) Why is it that what works on my simulator, does not work on the iPhone?

Thanks!