Xcode 6.1 & Cocoapods Integration/Dependency Error - library not found for -lPods-{Pod Name}

Double check that you are opening the .xcworkspace file and not the .xcodeproj file, that's a common mistake that can lead to this kind of problems.

To fix this I had to delete libPods.a under Application Targets -> General -> Linked Frameworks and Libraries. It was highlighted in red (meaning unfound) but I didn't need to replace it; simply clearing it was enough.

For me, the problem was that my project's and Cocoapod's build configurations didn't match, which (I think) meant they were looking in different directories for the compiled libraries.