I managed to uninstall xcode completely. I browsed /Library/Developer/4.1/ and found uninstall-devtools asked me for sudo so I run:
sudo /Library/Developer/4.1/uninstall-devtools --mode=all
sudo /Library/Developer/Shared/uninstall-devtools --mode=all - both worked fine
Then I looked at the logs /var/log/system.log and saw something strange:
Aug 28 04:41:28 Hadouken com.apple.kextd[16]: Can't load /System/Library/Extensions/iSpy.kext - no code for running kernel's architecture.
Aug 28 04:41:18 Hadouken com.apple.launchd[1] (com.taoeffect.ispyd): Throttling respawn: Will start in 10 seconds
I don't know what the iSpy is so I went /System/Library/Extensions and removed iSpy.kext and I got:
Aug 28 05:27:51 Hadouken com.apple.launchd[1] (com.taoeffect.ispyd[6406]): posix_spawn("/Library/iSpy/ispyd", ...): No such file or directory
Aug 28 05:27:51 Hadouken com.apple.launchd[1] (com.taoeffect.ispyd[6406]): Exited with code: 1
I navigated to /System/Library/LaunchDeamons and removed com.taoeffect.ispyd.plist
Restart and viola - worked!
I hope this helps and I hope someone would be able to explain what the iSpy was - sounds scary.
EDIT:
Xcode installed and working just fine however I still get:
Aug 28 06:09:34 Hadouken com.apple.launchd[1] (com.taoeffect.ispyd[1762]): posix_spawn("/Library/iSpy/ispyd", ...): No such file or directory
Aug 28 06:09:34 Hadouken com.apple.launchd[1] (com.taoeffect.ispyd[1762]): Exited with code: 1
Aug 28 06:09:34 Hadouken com.apple.launchd[1] (com.taoeffect.ispyd): Throttling respawn: Will start in 10 seconds
And I dont know how to remove it anymore :/