Thank you aleph_null, you are a great help. I look around at /usr/include and sure enough stdio.h and others are there.
I created an empty project, write a hello world C program and add it to the project, so that's the only file in the project. Configure a target as application, I compiled it and it completed OK. Tried to run it with Terminal but it doesn't work. I don't understand what you said about ./foo and there are many files in the /usr/lib directory, which file(s) should I include with the project.
Anyone can shed a bit more light on how I should go about creating plain C projects in OS X, please let me know. aleph_null, you said something about the built-in stdio pane in Project Builder, where is that and how to use it?