Unable to install android application on device

I'm trying to install my app on htc desire hd, using titanium studio but I get the following error:

[ERROR] Timed out waiting for device to be ready, you may try reconnecting the USB cable
[ERROR] :  Build process exited with code 1
[ERROR] :  Project failed to build after 57s 71ms

debung is enabled on the phone, tried both with USB storage on and off (neither worked), allow mock locations is on.

adb devies prints the following response:

$ adb devices
adb server is out of date.  killing...
* daemon started successfully *
List of devices attached 
HT22FRX03389    device

p.s. I'm on mac and using 3.1.1 version of titanium studion.

Any ideas what could be the problem?