make requires that command lines begin with a tab. In your makefile you need to add a tab in front of the 2nd, 4th, and 6th lines. This is why your are getting the message makefile:2: *** missing separator. Stop. Notice the 2 in the message, that is pointing to line 2 of the makefile.
Other problem, but not that big a deal. lib.h should not be on line 5 and 6. Based on your code it is not a dependency for project.o and does not make sense having it on the cc line. While it won't cause an error, it is not necessary. My makefile looks similar to what jillagre posted. "Notice the tabs before the command lines."
Code:
project: project.o lib.o
cc -o project project.o lib.o
project.o: project.c
cc -c project.c
lib.o: lib.c lib.h
cc -c lib.c
Bill
