Seems you are not in an MSYS environment. What does "echo $MSYSTEM say?" If it says "MINGW32", then please run "C:\MinGW\msys\1.0\msys.bat MSYS" and try again in this environment.

Hi Fabian,

Thanks for the help. Just ignore my previous email error which used a different build.

I do run from msys.bat MSYS and then try to build grep and unzip package. 
Both got stuck in the middle. do you have such a problem to build any of them?

 $ ./msys-build-grep grep-2.5.4.tar.bz2
*** Info: unpacking grep-2.5.4.tar.bz2
debian-2.5.4-4-patches/
....
*** applying patch 80-catalan_translation.patch:
patching file po/ca.po
Hunk #1 succeeded at 74 with fuzz 2 (offset -1 lines).
(hangup here for 5 hours)

$tar -Jxf unzip-6.0-1-msys-1.0.13-src.tar.lzma
$ ./msys-build-unzip unzip60.tgz
*** Info: unpacking unzip60.tgz
*** Info: Unpacking optional bzip2 component
(hangup here for 5 hours)

Thanks.

tom