% rpm --rebuild dialog-0.6-16.src.rpm
make: Entering directory `/usr/src/redhat/BUILD/dialog-0.6/src'
install -m 755 -o root -g root dialog /var/tmp/dialog-root/usr/bin
install: /var/tmp/dialog-root/usr/bin/dialog: Operation not permitted
make: *** [install] Error 1
The 'make install' process is trying to install files owned by root. This means
you have to be root to rebuild the source package, which is a Bad Thing.
Would be better to specify file ownership in the %files part of the spec file
rather than by chmodding as part of 'make install'.
works for me with the current dialog-0.9a-6.src.rpm. You may consider to take a newer version?