with the other errors, it looks like you made a typo or missed a step in setting up the environment.
I would recommend staring over and double or triple checking every line you enter.
It might also be an idea to use the r2052 [ for 32 bit ] or r2014 [ for 64 bit ] version of the livecd and use the current book, which is version 6.3
The 6.3 version uses newer versions of the software, binutils-2.17 for example.
and don't forget, lfs has the
lfs-support@linuxfromscratch.org mailing list. [ membership required to post to it ] You might get faster responses on it, since most people using lfs spend more time reading email lists than website postings.