Thanks for your file-search tip. I ran it and got:
The list below shows the packages that contains "limits\.h" file.
[uninstalled] - kernel-headers-3.2.45-x86-2
[ upgrade ] - kernel-source-3.2.29-noarch-1 --> kernel-source-3.2.45-noarch-2
[ installed ] - dev86-0.16.17-x86_64-2
[ installed ] - gcc-4.7.1-x86_64-1
[ installed ] - gcc-g++-4.7.1-x86_64-1
[ installed ] - llvm-3.0-x86_64-2
[ installed ] - glibc-2.15-x86_64-7
[ installed ] - tetex-3.0-x86_64-8
So what happened is that I had to manually remove the kerne* packages, and reinstalled from the DVD, as my machine was hit by the i915 driver issue. I forgot to reinstall the kernel-headers after downgrading the kernel
Now I got them from the installation DVD and the compilation proceeds fine. Solved!