I am conducting the first pass with bintils one. My host system is the live CD. I am wrapping the configure in a time block with make and make install. I receive the following block.

cp bfd-in3.h bfd-tmp.h
/bin/sh ./../moveif-hange bfd-tmp.h bfd.h
bfd.h is unchanged
rm-f bfd-tmp.h
touch stmp-bfd-h
make[3]:*** No rule to make target '../include/ansidecl.h', needed by 'archive.lo', stop.
make[3]: Leaving directory '/mnt/lfs/binutils-build/binutils/bfd'
make[2]: *** [all-recursive] Error 1
make[2]: Leaving directory '/mnt/lfs/binutils-build/binutils/bfd'
make[1]: ***[all] Error 2
make[1] Leaving directory '/mnt/lfs/binutils-build/binutils/bfd'
make: *** [all-bfd] Error 2

Does anyone know what causes this? Thanks.

it looks like you made the binutils-build directory and then unpacked the binutils source inside it.......the source has to be unpacked in its own directory and the binutils-build dir is to be separate..........

Yes, freakyg is right.

Now here's what you have to do:
remove your binutils-build directory
untar binutils in a directory (so you'll get a directory like /temp/binutils-2.4 )
make binutils-build in that same directory (so you'll get /temp/binutils-build)
now run the commands the book describe

Good luck,
Hoes