LinuxQuestions.org - build grade from source

I'm trying to install grade-0.4 (gnome2-frontend for mencoder) from source on my Ubuntu 5.10
Code:
joachim@ubuntu:~/data/source/grade-0.4$ ./configure --prefix=/usr

checking for a BSD compatible install... /usr/bin/install -c

checking whether build environment is sane... yes

checking whether make sets ${MAKE}... yes

checking for working aclocal... found

checking for working autoconf... found

checking for working automake... found

checking for working autoheader... found

checking for working makeinfo... missing

checking whether to enable maintainer-specific portions of Makefiles... no

checking for gcc... gcc

checking for C compiler default output... a.out

checking whether the C compiler works... yes

checking whether we are cross compiling... no

checking for executable suffix...

checking for object suffix... o

checking whether we are using the GNU C compiler... yes

checking whether gcc accepts -g... yes

checking for strerror in -lcposix... no

checking for gcc... (cached) gcc

checking whether we are using the GNU C compiler... (cached) yes

checking whether gcc accepts -g... (cached) yes

checking for gcc option to accept ANSI C... none needed

checking how to run the C preprocessor... gcc -E

checking for ANSI C header files... yes

./configure: line 2977: GNOME_COMPILE_WARNINGS: command not found

checking for pkg-config... /usr/bin/pkg-config

checking for libgnomeui-2.0... yes

checking PACKAGE_CFLAGS... -DORBIT2=1 -pthread -I/usr/include/libgnomeui-2.0 -I/usr/include/libgnome-2.0 -I/usr/include/libgnomecanvas-2.0 -I/usr/include/gtk-2.0 -I/usr/include/libart-2.0 -I/usr/include/gconf/2 -I/usr/include/libbonoboui-2.0 -I/usr/include/gnome-vfs-2.0 -I/usr/lib/gnome-vfs-2.0/include -I/usr/include/gnome-keyring-1 -I/usr/include/glib-2.0 -I/usr/lib/glib-2.0/include -I/usr/include/orbit-2.0 -I/usr/include/libbonobo-2.0 -I/usr/include/bonobo-activation-2.0 -I/usr/include/pango-1.0 -I/usr/include/freetype2 -I/usr/lib/gtk-2.0/include -I/usr/include/atk-1.0 -I/usr/include/cairo -I/usr/include/libxml2

checking PACKAGE_LIBS... -Wl,--export-dynamic -pthread -lgnomeui-2 -lSM -lICE -lbonoboui-2 -lgnome-keyring -lxml2 -lz -lgnomecanvas-2 -lgnome-2 -lpopt -lart_lgpl_2 -lpangoft2-1.0 -lgtk-x11-2.0 -lgdk-x11-2.0 -latk-1.0 -lgdk_pixbuf-2.0 -lpangocairo-1.0 -lfontconfig -lXinerama -lXi -lXrandr -lXext -lXcursor -lXfixes -lpango-1.0 -lcairo -lXrender -lX11 -lgnomevfs-2 -lbonobo-2 -lgconf-2 -lgobject-2.0 -lbonobo-activation -lORBit-2 -lm -lgmodule-2.0 -ldl -lgthread-2.0 -lglib-2.0

checking for ranlib... ranlib

checking for gcc option to accept ANSI C... none needed

checking for an ANSI C-conforming const... yes

checking for inline... inline

checking for sys/types.h... yes

checking for sys/stat.h... yes

checking for stdlib.h... yes

checking for string.h... yes

checking for memory.h... yes

checking for strings.h... yes

checking for inttypes.h... yes

checking for stdint.h... yes

checking for unistd.h... yes

checking for off_t... yes

checking for size_t... yes

checking for working alloca.h... yes

checking for alloca... yes

checking for stdlib.h... (cached) yes

checking for unistd.h... (cached) yes

checking for getpagesize... yes

checking for working mmap... yes

checking for argz.h... yes

checking for limits.h... yes

checking for locale.h... yes

checking for nl_types.h... yes

checking for malloc.h... yes

checking for string.h... (cached) yes

checking for unistd.h... (cached) yes

checking for sys/param.h... yes

checking for getcwd... yes

checking for munmap... yes

checking for putenv... yes

checking for setenv... yes

checking for setlocale... yes

checking for strchr... yes

checking for strcasecmp... yes

checking for strdup... yes

checking for __argz_count... yes

checking for __argz_stringify... yes

checking for __argz_next... yes

checking for LC_MESSAGES... yes

checking for libintl.h... yes

checking for dgettext in libc... yes

checking for msgfmt... /usr/bin/msgfmt

checking for dcgettext... yes

checking for gmsgfmt... /usr/bin/msgfmt

checking for xgettext... /usr/bin/xgettext

configure: creating ./config.status

config.status: creating Makefile

config.status: error: cannot find input file: Makefile.in

joachim@ubuntu:~/data/source/grade-0.4$ make

make: *** No targets specified and no makefile found.  Stop.

joachim@ubuntu:~/data/source/grade-0.4$
What am I missing?

@ngelot