Fontconfig - Feb 2008 - gcc: cannot specify -o with -c or -S and multiple compilations

Hi,

I am trying to compile fontconfig 2.5.0 on an native arm platform but I 
get this error when making.

...
 gcc -DHAVE_CONFIG_H -I. -I. -I.. -I.. -I../src 
-I/root/rrd/install/include/freetype2 -I/root/rrd/install/include 
/root/rrd/install/install -Wall -Wpointer-arith -Wstrict-prototypes 
-Wmissing-prototypes -Wmissing-declarations -Wnested-externs 
-fno-strict-aliasing 
-DFC_CACHEDIR=\"/root/rrd/install/var/cache/fontconfig\" 
-DFONTCONFIG_PATH=\"/root/rrd/install/etc/fonts\" 
-I/root/rrd/install/include -MT fcatomic.lo -MD -MP -MF 
.deps/fcatomic.Tpo -c fcatomic.c  -fPIC -DPIC -o .libs/fcatomic.o
gcc: cannot specify -o with -c or -S and multiple compilations

I have successfully compiled and installed freetype 2.3.5 and 
libxml2-2.6.31 and have run configure on fontconfig as per the following 
command

LIBXML2_CFLAGS=$INSTALL_DIR/install LIBXML2_LIBS=$INSTALL_DIR/lib 
./configure --enable-libxml2 \
--prefix $INSTALL_DIR 
--with-freetype-config=$INSTALL_DIR/bin/freetype-config
make


gcc is v3.3.5
GNU Make is v3.81

Can anyone offer any suggestions as to what to try next?

Regards,
Richard