the examples and src Makefile.am break a few standards ... when using paths, you need to use $(srcdir...) and $(builddir...) variables rather than hardcoded relative paths (like "..")
also, the linking confuses libtool ... you tell libtool the linker script (*.la) to link against, not the path/library that is generated automatically
attached patch fixes all of this
libipod-build-cleanup.patch