Hi,
cross-compiling will give you major heartburn until you get all of your environment vars setup correctly
The sharp sdk comes with shell scripts that help do this, though I found some bugs in them.
Basically, I set my PATH variable to point to the directory containing the arm-linux-* and other arm tools, then source this when I want to cross-compile.
so if I type 'which gcc', it should show the one in the sharp sdk, not the one in /usr/bin.
I also created a directory /opt/sharplibs/arm, where I install my cross-compiled libs into (not sure if libjpeg is in there, it might be, I'll look tonight.)
But in short, though the apps are supposed to obey the CC and LD vars, it sounds like they are being ignored in your case, so setting your PATH should fix this
I'm not sure if you can use /usr/bin/libtool
I hope this helps, if it's confusing, I can send the script I source for cross-compiling