Archimark, thanks for the advise but it didnt seem to help so here\'s what i did:
I manually typed in the relevant commands from the included image_setup.sh script with one change:
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DEVELOP=/home/zaurus/develop
echo \"/mnt/cf/dev/dev_img-1.5 /mnt/dev cramfs loop,noauto 0 0\" ]] /etc/fstab
# next line was originally: mkdir $DEVELOP 2] /dev/null
mkdir $DEVELOP
ln -sf $DEVELOP /mnt/dev
mount /mnt/dev
echo \"export PATH=$PATH:/mnt/dev/bin\" ]] /home/zaurus/.profile
echo \"export PATH=$PATH:/mnt/dev/bin\" ]] /home/root/.profile
$DEVELOP/bin/compiler_setup.sh
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This works fine so i suspect there is something wrong with the install script (on my setup at least)