Obnoxious make problem w/0.7008

[Dagmar d'Surreal <dagmar speakeasy net>]

I don't know if this is an issue with gcc 3.2 or not, although it looks
to me as if the Makefile.PL is just doing the wrong things here...

The tail end of the build output looks like this...

cc: xs/GtkHSeparator.o: No such file or directory
cc: xs/GtkRadioMenuItem.o: No such file or directory
cc: xs/GtkEditable.o: No such file or directory
cc: xs/GtkInvisible.o: No such file or directory
cc: xs/GtkWidget.o: No such file or directory
cc: build/PerlGtkExt.o: No such file or directory
cc: build/GtkDefs.o: No such file or directory
make[1]: *** [../blib/arch/auto/Gtk/Gtk.so] Error 1
make[1]: Leaving directory `/space/tmp/Gtk-Perl-0.7008/Gtk'
make: *** [subdirs] Error 2

This is completely accurate, too.  Those files don't exist in those
directories.  They're being created in the directories their .c source
files appear in, and since that's the directory gcc is being invoked in,
that seems completely correct also...

cc -c  -I/usr/include/gtk-1.2 -I/usr/include/glib-1.2
-I/usr/lib/glib/include -I/usr/X11R6/include  -I. -I./build
-fno-strict-aliasing -D_LARGEFILE_SOURCE -D_FILE_OFFSET_BITS=64   
-DVERSION=\"0.7008\" -DXS_VERSION=\"0.7008\" -fPIC
"-I/usr/lib/perl5/5.8.0/i586-linux/CORE"  -DLAZY_LOAD -DPERL_POLLUTE
-DGTK_HVER=0x01020a build/GtkDefs.c

Sample gcc invocation from the make.log above.  Is there some directive
that's being overlooked by the make scripts?  I thought at first it
might be my build of perl 5.8.0, so I went back through and rebuilt it
with slightly more conservative settings (no long doubles this time--I
don't have a very esoteric build).  Same result.

Any suggestions?

(linux kernel 2.4.19
 binutils 2.12.1
 gcc 3.2
 glibc 2.2.5
 latest autoconf/automake/libtool, etc)