I am trying to change the deployment target from 5.1 to 4.2 in Xcode 4.4 and it's not working
It's a known bug. XCode 4.4 doesn't let you target armv6 architecture. You'll have to downgrade to Xcode 4.3.3 to do this (learned it the hard way :-/). You'll have to download 4.3.3 from the Apple dev website.
Also, make sure not to run both 4.4 and 4.3.3 at once. My mac was semi frozen for an hour until I managed to force kill these two processes.
Update: This bug has been fixed in the newer versions of the XCode.