Where you want to compile it in scratchbox or on the device? When you want to do it on the device you should use a chroot not directly install to the device.

I would recommend to compile it with gcc4.2 first. I think this gcc4.6 broken my dev environment, but I need to check.
I will try also to build 3.5.9 again because of the assembler messages these are not correct and I think it happens because I tried so many things. So next days I am starting from scratch again.