Well, if you're using pdaXrom, the ZGCC squash-/cramfs should work fine, provided you followed the instructions for setting it up.
Just mounting it under Cacko/Sharp SHOULD work, but you'd need to edit your PATH with whatever additional stuff pdaX has (maybe somebody with a beta 1 setup could post it...). I thought there was a Cacko GCC image floating around a long time ago, but that may have been cross-compiling stuff.
If you're using Angstrom, as your sig suggests, you should be able to just install all of the necessary stuff (ipkg install gcc ...).
HTH