../gcc-3.4.3/configure --exec-prefix=/usr/local --program-prefix=ppc-
--with-stabs -with-cpu=603 --target=powerpc-eabi --with-gnu-as=ppc-as
--with-gnu-ld=ppc-ld --enable-languages=c,c++
Try adding --with-newlib. You either have to use a combined tree so that newlib will be auto-detected, or or else explicitly tell configure that your target "OS" is newlib. We need to know the target OS in order to configure target libraries correctly.
The powerpc-unknown-eabi suggestion is nonsense. Ignore it.
The suggestion to look at Dan Kegel's crosstool is a good one, but crosstool only handles cross compilers to linux, and hence isn't relevant here.
--
Jim Wilson, GNU Tools Support, http://www.SpecifixInc.com