When running configure, wgcc is trying to find the directories for include files and libraries to be used in a Windows compile. The search is done on assumptions on the Interix path environment. As spaces in the path are tricky in Interix and the default installation directory for Visual Studio is
'<Program Files>\Visual Studio 2005' it's unlikely (or not necessarily the case) that the Interix path really points to a real Visual Studio directory (e.g. VC/bin). It could be a NTFS folderlink, an Interix symbolic link, Windows DDK bin, Windows SDK VC etc. Furthermore it does not work in x64.
You will get the message "Could not find VC++ in PATH" if the search fails.
Whatever the solution is it's very likely there is a real Visual Studio installation directory somewhere and there is a environment variable that can be used to find it: VS80COMNTOOLS. It's also very likely that the Platform SDK is replaced by a Windows SDK installation. The MSSDK environment variable is commonly used to point to the installtion directory. The SUA ksh login script profile is using VS80COMNTOOLS to find Visual Studio - a great idea! Why not use the same technique in wgcc?
I made a script snippet to replace the current search in acinclude.m4 line 59
snippet for acinclude.m4