Using patches from 
http://www.geocities.com/dt_or/gpm/gpm.html (thanks Civil) I managed to get gpm building adain and cursor now follows touchpad taps and grags.
Unfortunately I do not seem to be able to select and/or paste anything.
Building for arm will require some extra options:
./configure CFLAGS="-lm" \
  CC=armv5tel-cacko-linux-gcc \
  CPPFLAGS="-lm" \
  LDFLAGS="-lm" \
  --host=armv5tel-cacko-linux \
  --prefix=/usr \
  --sysconfdir=/etc
You also need to state LDFLAGS AGAIN when making:
LDFLAGS="-lm"  make
Anyone have any idea how to get the rest working ?