If the path is binutils-build/binutils-2.17/configure then it looks like you've extracted the tar file to to binutils-build instead of the top level directory.
I take it that you ended up running /binutils-build/binutils-2.17/configure and that was when you started getting errors? if your current directory is binutils-build have you tried:
CC="gcc -B/usr/bin/" ./binutils-2.17/configure \
--prefix=tools --disable-nls --disable-werror
Also, please watch the language - by all means disagree with people, but the rest isn't necessary.