You can't install old 3.1 SDKs on Xcode 4. You can set the Deployment target lower to allow testing on devices running older OS versions than your current SDK installation. The only current way to completely ensure backward compatibility, while running more recent versions of Xcode, is to keep a device that runs iOS 3.x, and test on that device. (...because it is claimed that the old Simulators/tools sometimes actually allows APIs that won't run on an actual device with an OS of the same version).
Other methods include installing the different versions of iOS developer tools in a separate Developer_XYZ directories, and or keeping around a bootable HD with the older iOS developer tool installation (say Snow Leopard with Xcode 3.x, since Lion might only support running Xcode 4.x).
与恶龙缠斗过久,自身亦成为恶龙;凝视深渊过久,深渊将回以凝视…