I have not red the book on this one, but: could it be a typo ?
This is what you have:
/bin/sh ../gcc-3.3.3/mkinstalldirs /tools-with-local-prefix=/tools--disable\
-nls /tools-with-local-prefix=/tools--disable-nls
this is what should be there:
/bin/sh ../gcc-3.3.3/mkinstalldirs /tools-with-local-prefix=/tools--disable\
-nls /tools-with-local-prefix=/tools --disable-nls
...between /tools-with-local-prefix=/tools and --disable-nls there should be a space !