Following the samples I have managed to compile "omap3-console-image" and create a bootable mSD.
My Overo Air is up and running with Wifi connection to the internet.

As the next stage I need to compile some user level programs on it. The console image does not have gcc by default.
Trying to do:
opkg install gcc

root@overo:/# opkg install gcc
Package gcc (4.3.3-r6.1.3) installed in root is up to date.
Configuring hicolor-icon-theme
//usr/lib/opkg/info/hicolor-icon-theme.postinst: line 7: can't create /etc/gtk-2.0/gdk-pixbuf.loaders: nonexistent directory
//usr/lib/opkg/info/hicolor-icon-theme.postinst: line 7: gdk-pixbuf-query-loaders: not found
//usr/lib/opkg/info/hicolor-icon-theme.postinst: line 13: gtk-update-icon-cache: not found
postinst script returned status 127
Collected errors:
 * ERROR: hicolor-icon-theme.postinst returned 127

I can't install GTK either (fails with the same problem).
Also "hicolor-icon-theme" appears like part of a graphics library. Something I have absolutely no need for.

Is there another way to get gcc working ? (Somehow during bitbake ?)

Any suggestions will be most welcome