Can't compile CEL

I've installed Crystal Space 0.99, the crystalspace win32 libraries, and Mingw After extracting the Cel sourcecode to
C:/.../crystalspace/cel I tried to run configure from inside MingW but I get the following error

$ ./configure
checking build system type... i686-pc-mingw32
checking host system type... i686-pc-mingw32
checking how to create a directory... mkdir
checking how to create a directory tree... mkdir -p
checking for gcc... gcc
checking for C compiler default output file name... configure: error: C compiler cannot create executables
See `config.log' for more details.

My Config.log file looks like this:

This file contains any messages produced by compilers while
running configure, to aid debugging if configure makes a mistake.

It was created by cel configure 0.99, which was
generated by GNU Autoconf 2.59. Invocation command line was

$ ./configure

## --------- ##
## Platform. ##
## --------- ##

hostname = DDJ00081
uname -m = i686
uname -r = 1.0.10(0.46/3/2)
uname -s = MINGW32_NT-5.1
uname -v = 2004-03-15 07:17

/usr/bin/uname -p = unknown
/bin/uname -X = unknown

/bin/arch = unknown
/usr/bin/arch -k = unknown
/usr/convex/getsysinfo = unknown
hostinfo = unknown
/bin/machine = unknown
/usr/bin/oslevel = unknown
/bin/universe = unknown

PATH: /C/CrystalSpaceLibs/dlls
PATH: /C/CrystalSpaceLibs/tools
PATH: .
PATH: /usr/local/bin
PATH: /mingw/bin
PATH: /bin
PATH: "C
PATH: /Program Files/Microsoft DirectX SDK (August 2006)/Utilities/Bin/x86"
PATH: /c/texmf/miktex/bin
PATH: /c/WINDOWS/system32
PATH: /c/WINDOWS
PATH: /c/WINDOWS/System32/Wbem
PATH: /c/Program Files/ATI Technologies/ATI Control Panel
PATH: /c/Program Files/Microsoft Office/OFFICE11/Business Contact Manager/IM
PATH: /c/Program Files/Microsoft SQL Server/80/Tools/Binn/
PATH: /c/Program Files/Microsoft Office/OFFICE11/Business Contact Manager/
PATH: /c/Panda3D-1.1.0/bin
PATH: /c/Program Files/Microsoft SQL Server/90/Tools/binn/
PATH: /c/Program Files/QuickTime/QTSystem/
PATH: /c/Program Files/gtk2/bin
PATH: /c/Program Files/mlt/bin
PATH: /c/Program Files/OpenLibraries/bin
PATH: .

## ----------- ##
## Core tests. ##
## ----------- ##

configure:1402: checking build system type
configure:1420: result: i686-pc-mingw32
configure:1428: checking host system type
configure:1442: result: i686-pc-mingw32
configure:1454: checking how to create a directory
configure:1461: result: mkdir
configure:1466: checking how to create a directory tree
configure:1478: result: mkdir -p
configure:1605: checking for gcc
configure:1621: found /mingw/bin/gcc
configure:1631: result: gcc
configure:1875: checking for C compiler version
configure:1878: gcc --version </dev/null >&5
gcc.exe (GCC) 3.4.2 (mingw-special)
Copyright (C) 2004 Free Software Foundation, Inc.
This is free software; see the source for copying conditions. There is NO
warranty; not even for MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.

configure:1881: $? = 0
configure:1883: gcc -v </dev/null >&5
Reading specs from C:/msys/1.0/mingw/bin/../lib/gcc/mingw32/3.4.2/specs
Configured with: ../gcc/configure --with-gcc --with-gnu-ld --with-gnu-as --host=mingw32 --target=mingw32 --prefix=/mingw --enable-threads --disable-nls --enable-languages=c,c++,f77,ada,objc,java --disable-win32-registry --disable-shared --enable-sjlj-exceptions --enable-libgcj --disable-java-awt --without-x --enable-java-gc=boehm --disable-libgcj-debug --enable-interpreter --enable-hash-synchronization --enable-libstdcxx-debug
Thread model: win32
gcc version 3.4.2 (mingw-special)
configure:1886: $? = 0
configure:1888: gcc -V </dev/null >&5
gcc.exe: `-V' option must have argument
configure:1891: $? = 1
configure:1914: checking for C compiler default output file name
configure:1917: gcc conftest.c >&5
gcc.exe: installation problem, cannot exec `as': Invalid argument
configure:1920: $? = 1
configure: failed program was:
| /* confdefs.h. */
|
| #define PACKAGE_NAME "cel"
| #define PACKAGE_TARNAME "cel"
| #define PACKAGE_VERSION "0.99"
| #define PACKAGE_STRING "cel 0.99"
| #define PACKAGE_BUGREPORT "cel-main@lists.sourceforge.net"
| /* end confdefs.h. */
|
| int
| main ()
| {
|
| ;
| return 0;
| }
configure:1959: error: C compiler cannot create executables
See `config.log' for more details.

## ---------------- ##
## Cache variables. ##
## ---------------- ##

ac_cv_build=i686-pc-mingw32
ac_cv_build_alias=i686-pc-mingw32
ac_cv_env_CC_set=
ac_cv_env_CC_value=
ac_cv_env_CFLAGS_set=
ac_cv_env_CFLAGS_value=
ac_cv_env_CPPFLAGS_set=
ac_cv_env_CPPFLAGS_value=
ac_cv_env_CPP_set=
ac_cv_env_CPP_value=
ac_cv_env_CRYSTAL_set=set
ac_cv_env_CRYSTAL_value='C:\Program Files\CrystalSpace099'
ac_cv_env_CXXFLAGS_set=
ac_cv_env_CXXFLAGS_value=
ac_cv_env_CXX_set=
ac_cv_env_CXX_value=
ac_cv_env_LDFLAGS_set=
ac_cv_env_LDFLAGS_value=
ac_cv_env_build_alias_set=
ac_cv_env_build_alias_value=
ac_cv_env_host_alias_set=
ac_cv_env_host_alias_value=
ac_cv_env_target_alias_set=
ac_cv_env_target_alias_value=
ac_cv_host=i686-pc-mingw32
ac_cv_host_alias=i686-pc-mingw32
ac_cv_prog_ac_ct_CC=gcc
cs_cv_shell_mkdir=mkdir
cs_cv_shell_mkdir_p='mkdir -p'

## ----------------- ##
## Output variables. ##
## ----------------- ##

CC='gcc'
CFLAGS=''
CONFIG_BFD=''
CONFIG_CPPUNIT=''
CONFIG_NL=''
CPP=''
CPPFLAGS=''
CRYSTAL='C:\Program Files\CrystalSpace099'
CRYSTAL_CONFIG_TOOL=''
CSLIBS_CONFIG=''
CXX=''
CXXFLAGS=''
DEFS=''
DOT=''
DOXYGEN=''
DVIPDF=''
DVIPS=''
ECHO_C=''
ECHO_N='-n'
ECHO_T=''
EGREP=''
EXEEXT=''
INSTALL=''
LDFLAGS=''
LIBOBJS=''
LIBS=''
LTLIBOBJS=''
MAKEINFO=''
MKDIR='mkdir'
MKDIRS='mkdir -p'
OBJCOPY=''
OBJEXT=''
PACKAGE_BUGREPORT='cel-main@lists.sourceforge.net'
PACKAGE_NAME='cel'
PACKAGE_STRING='cel 0.99'
PACKAGE_TARNAME='cel'
PACKAGE_VERSION='0.99'
PATH_SEPARATOR=':'
PERL=''
PKG_CONFIG=''
PYTHON=''
RANLIB=''
SHELL='/bin/sh'
SWIG=''
TEXI2DVI=''
TEXI2PDF=''
TTREE=''
WINDRES=''
ac_ct_CC='gcc'
ac_ct_CONFIG_BFD=''
ac_ct_CONFIG_CPPUNIT=''
ac_ct_CONFIG_NL=''
ac_ct_CSLIBS_CONFIG=''
ac_ct_CXX=''
ac_ct_DOT=''
ac_ct_OBJCOPY=''
ac_ct_PKG_CONFIG=''
ac_ct_RANLIB=''
ac_ct_WINDRES=''
ac_pt_CRYSTAL_CONFIG_TOOL=''
bindir='${exec_prefix}/bin'
build='i686-pc-mingw32'
build_alias=''
build_cpu='i686'
build_os='mingw32'
build_vendor='pc'
datadir='${prefix}/share'
exec_prefix='NONE'
host='i686-pc-mingw32'
host_alias=''
host_cpu='i686'
host_os='mingw32'
host_vendor='pc'
includedir='${prefix}/include'
infodir='${prefix}/info'
libdir='${exec_prefix}/lib'
libexecdir='${exec_prefix}/libexec'
localstatedir='${prefix}/var'
mandir='${prefix}/man'
oldincludedir='/usr/include'
prefix='NONE'
program_transform_name='s,x,x,'
sbindir='${exec_prefix}/sbin'
sharedstatedir='${prefix}/com'
sysconfdir='${prefix}/etc'
target_alias=''

## ----------- ##
## confdefs.h. ##
## ----------- ##

#define PACKAGE_BUGREPORT "cel-main@lists.sourceforge.net"
#define PACKAGE_NAME "cel"
#define PACKAGE_STRING "cel 0.99"
#define PACKAGE_TARNAME "cel"
#define PACKAGE_VERSION "0.99"

configure: exit 77

thank-you in advance for any suggestions as to what I might be doing wrong/what I fix.