No further progress quite yet, but I have stumbled across something that could help. I did some research on the last set of errors I was getting (listed below) and I believe the problem lies in the version of glibc being used. All other posts on the web that I was able to find regarding these errors came to the conclusion that this particular version of glibc, version 2.3.2, is just broken.
libc.so: file format not recognized; treating as linker script
and
libc.so:4: syntax error
So if that is definately the case, then a relatively simple fix should be to use OE to build the latest version of glibc, 2.3.4 i believe, and use that one instead. Anyone interested in this project have experience with OE? I am more that happy to give it a go, but it may take me a while to get anywhere. So, if anyone wants to help out and beat me to the punch, feel free. Otherwise, that is the current state of gcc and I will update once something happens.