When I built binutils with ../binutils-2.15/configure --prefix=/u/jbuck/gnu.sol2 The "make install" step failed, because the generated Makefile had INSTALL set to INSTALL = ../binutils-2.15/install-sh -c but $(INSTALL) is invoked from a subdirectory. I successfully worked around this by saying make INSTALL="/u/jbuck/gnu/src/binutils-2.15/install-sh -c" install I could also have worked around it by providing an absolute path to configure, I think. The configure process should have either generated an absolute path to install-sh, or corrected it appropriately for subdirectories.
Already fixed in CVS and for 2.16. *** This bug has been marked as a duplicate of 179 ***