http://gcc.gnu.org/bugzilla/show_bug.cgi?id=50293
--- Comment #2 from Cody Schafer <jmesmon at gmail dot com> 2012-10-14 00:58:44 UTC --- I've just run into the same issue with gcc 4.7.2 (using the binary here: http://www.makehackvoid.com/sites/default/files/MHV_AVR_Tools_20121007.exe ) Disabling LTO allows the link to complete.