Here's the fix:

vim THE_FILE
:%s/unsigned RE_TRANSLATE_TYPE/RE_TRANSLATE_TYPE/g

for files 
regexec.c
regcomp.c
regex_internal.c
regex_internal.h

gnueabi/sed-4.1.2-r2/sed-4.1.2/lib -I..  -I/home/peru/overo-oe/tmp/work/armv7a-angstrom-linux-gnueabi/sed-4.1.2-r2/sed-4.1.2/lib -I/home/peru/overo-oe/tmp/work/armv7a-angstrom-linux-gnueabi/sed-4.1.2-r2/sed-4.1.2/intl -I/home/peru/overo-oe/tmp/work/armv7a-angstrom-linux-gnueabi/sed-4.1.2-r2/sed-4.1.2 -I../lib -isystem/home/peru/overo-oe/tmp/sysroots/armv7a-angstrom-linux-gnueabi/usr/include  -isystem/home/peru/overo-oe/tmp/sysroots/armv7a-angstrom-linux-gnueabi/usr/include -fexpensive-optimizations -frename-registers -fomit-frame-pointer -O2 -ggdb3 -MT regex.o -MD -MP -MF .deps/regex.Tpo -c -o regex.o regex.c
| In file included from regex.c:84:
| regex_internal.h:338: error: duplicate 'unsigned'
| In file included from regex.c:86:
| regex_internal.c: In function 're_string_construct_common':
| regex_internal.c:192: error: duplicate 'unsigned'
| In file included from regex.c:87:
| regcomp.c: At top level:
| regcomp.c:112: error: duplicate 'unsigned'
| regcomp.c:127: error: duplicate 'unsigned'
| regcomp.c: In function 'build_charclass':
| regcomp.c:3419: error: duplicate 'unsigned'
| regcomp.c: In function 'build_charclass_op':
| regcomp.c:3494: error: duplicate 'unsigned'
| In file included from regex.c:88:
| regexec.c: In function 're_search_internal':
| regexec.c:593: error: duplicate 'unsigned'
| regexec.c:593: error: duplicate 'unsigned'
| make[2]: *** [regex.o] Error 1
| make[2]: Leaving directory `/mnt/data/Code/overo-oe/tmp/work/armv7a-angstrom-linux-gnueabi/sed-4.1.2-r2/sed-4.1.2/lib'
| make[1]: *** [all-recursive] Error 1
| make[1]: Leaving directory `/mnt/data/Code/overo-oe/tmp/work/armv7a-angstrom-linux-gnueabi/sed-4.1.2-r2/sed-4.1.2'
| make: *** [all] Error 2
| FATAL: oe_runmake failed
NOTE: Task failed: /home/peru/overo-oe/tmp/work/armv7a-angstrom-linux-gnueabi/sed-4.1.2-r2/temp/log.do_compile.19346
ERROR: TaskFailed event exception, aborting
ERROR: Build of /home/peru/overo-oe/org.openembedded.dev/recipes/sed/sed_4.1.2.bb do_compile failed
ERROR: Task 9 (/home/peru/overo-oe/org.openembedded.dev/recipes/sed/sed_4.1.2.bb, do_compile) failed
NOTE: Tasks Summary: Attempted 424 tasks of which 424 didn't need to be rerun and 1 failed.
ERROR: '/home/peru/overo-oe/org.openembedded.dev/recipes/sed/sed_4.1.2.bb' failed



peru@peru-desktop:overo-oe$ man grep
peru@peru-desktop:overo-oe$ grep 'unsigned\s*RE_TRANSLATE_TYPE' -R tmp/work/armv7a-angstrom-linux-gnueabi/sed-4.1.2-r2/ --color=auto -n
tmp/work/armv7a-angstrom-linux-gnueabi/sed-4.1.2-r2/sed-4.1.2/lib/regex_internal.h:338:  unsigned RE_TRANSLATE_TYPE trans;
grep: tmp/work/armv7a-angstrom-linux-gnueabi/sed-4.1.2-r2/sed-4.1.2/lib/regex.h: No such file or directory
tmp/work/armv7a-angstrom-linux-gnueabi/sed-4.1.2-r2/sed-4.1.2/lib/regcomp.c:112:static reg_errcode_t build_charclass (unsigned RE_TRANSLATE_TYPE trans,
tmp/work/armv7a-angstrom-linux-gnueabi/sed-4.1.2-r2/sed-4.1.2/lib/regcomp.c:121:static reg_errcode_t build_charclass (unsigned RE_TRANSLATE_TYPE trans,
tmp/work/armv7a-angstrom-linux-gnueabi/sed-4.1.2-r2/sed-4.1.2/lib/regcomp.c:127:                                       unsigned RE_TRANSLATE_TYPE trans,
tmp/work/armv7a-angstrom-linux-gnueabi/sed-4.1.2-r2/sed-4.1.2/lib/regcomp.c:3419:     unsigned RE_TRANSLATE_TYPE trans;
tmp/work/armv7a-angstrom-linux-gnueabi/sed-4.1.2-r2/sed-4.1.2/lib/regcomp.c:3494:     unsigned RE_TRANSLATE_TYPE trans;
tmp/work/armv7a-angstrom-linux-gnueabi/sed-4.1.2-r2/sed-4.1.2/lib/regex_internal.c:192:  pstr->trans = (unsigned RE_TRANSLATE_TYPE) trans;
tmp/work/armv7a-angstrom-linux-gnueabi/sed-4.1.2-r2/sed-4.1.2/lib/regexec.c:593:  unsigned RE_TRANSLATE_TYPE t = (unsigned RE_TRANSLATE_TYPE) preg->translate;