i had previously started a "bitbake base-image",on fedora14 distro machine, and ran into a linux-libc_headers_2.6.33.bb failed issue. Downgraded to gnu make-3.81 from make-3.82 ( thanks to http://www.graphics-muse.org/wp/?p=796
) to resolve.
i had also done the "bitbake base-image", with ASSUME_PROVIDED += "gcc3-native", and ASSUME_PROVIDED += "qemu-native" in local.conf in order to speed up the build on some advice. Commented these out.
deleted the tmp directory and did another "bitbake base-image" with success :-)