The search paths compiled into gcc in prc-tools are completely wrong.
Check this out:

$ /usr/bin/m68k-palmos-coff-gcc -print-search-dirs
install:
/var/tmp/prc-tools-buildroot/usr/lib/gcc-lib/m68k-palmos-coff/2.7.2.3-kgpd-071097/
programs:
/var/tmp/prc-tools-buildroot/usr/lib/gcc-lib/m68k-palmos-coff/2.7.2.3-kgpd-071097/:/var/tmp/prc-tools-buildroot/usr/lib/gcc-lib/m68k-palmos-coff/:/usr/lib/gcc/m68k-palmos-coff/2.7.2.3-kgpd-071097/:/usr/lib/gcc/m68k-palmos-coff/:/var/tmp/prc-tools-buildroot/usr/m68k-palmos-coff/bin/m68k-palmos-coff/2.7.2.3-kgpd-071097/:/var/tmp/prc-tools-buildroot/usr/m68k-palmos-coff/bin/
libraries:
/var/tmp/prc-tools-buildroot/usr/lib/gcc-lib/m68k-palmos-coff/2.7.2.3-kgpd-071097/:/usr/lib/gcc/m68k-palmos-coff/2.7.2.3-kgpd-071097/:/var/tmp/prc-tools-buildroot/usr/m68k-palmos-coff/lib/m68k-palmos-coff/2.7.2.3-kgpd-071097/:/var/tmp/prc-tools-buildroot/usr/m68k-palmos-coff/lib/

Yow! searching /var/tmp/... !!!!!!!  But nowhere is it searching the
correct locations!  This results in having to use multiple -B options in
order to override the broken search paths in order to find the various
compiler passes.

email me at rick (NOTE new email address) and I can send
you a helloworld.c and a Makefile that you can use to test the installation
of prc-tools before you ship it.

-Rick Richardson (rick)