config.log in libiberty contains:

configure:2272:
/SCRATCH/gcc-build/Linux/i686-pc-linux-gnu/gcc-4.2/gcc-4.2/./prev-gcc/xgcc
 -B/SCRATCH/gcc-build/Linux/i686-pc-linux-gnu/gcc-4.2/gcc-4.2/./prev-gcc/
 -B/SCRATCH/gcc-build/Linux/i686-pc-linux-gnu/install/i686-pc-linux-gnu/bin/ -c
 -g -O2  conftest.c >&5
lt-as-new: error while loading shared libraries: libbfd-2.16.1.so: cannot open
shared object file: No such file or directory

It looks like we have a wrong LD_LIBRARY_PATH setting.

It should work; I surely tested it before enabling toplevel bootstrap. The toplevel configure also has

HOST_LIB_PATH_bfd = \
  $$r/$(HOST_SUBDIR)/bfd/.:$$r/$(HOST_SUBDIR)/prev-bfd/.:

Could you try sticking an "echo $LD_LIBRARY_PATH" in the libiberty configure script?

Paolo

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