Looks like Unity 3.5 moves the project settings from Library to a folder titled "Project Settings". Might be helpful to update the readme file to indicate this change for future users.
I am also noticing an error with Unity 3.5. I am getting an "Invalid SceneHandle" error. It states:
Error in file: C:/BuildAgent/work/b0bcff80449a48aa/Runtime/Camera/UnityScene.cpp at line: 283
Could you shed some light on this error. It seems to go away once you run the game, but reappears when you go back into the editor.