i18n - app won't compile when i18n folder added to project

• app: android/ios mobile
• sdk: 3.2.1.GA
• os: osx mavericks
• studio Titanium Studio, build: 3.2.1.201402041146

Hi folks, When I add the i18n folder (same level as app folder), my app refuses to compile. For iOS, the compiler terminates at the line

[INFO] :   Generating i18n files
[INFO] :   Compiling localization files

Same thing happens when compiling for android except I get a message following that with

[INFO] :   Generating i18n files
[INFO] :   Compiling localization files
[ERROR] Application Installer abnormal process termination. Process exit value was 8

That's it. Nothing else. I've cleaned and rebuilt the project. Nothing. If I remove the folder altogether, the app compiles normally. I have one subfolder /en which contains the strings.xml which contains one resource:

< ?xml version="1.0" encoding="UTF-8"?>
    <resources>
        <string name="appname">FoodTruck</string>
    </resources>
</xml>

Anyone have any troubleshooting tips whatsoever? I followed the API guide to create this simple example. Did not expect a compiler failure. Thanks for the help.