Actually, I dont have to edit the default Make.config at all to make it fail. If I copy Make.config.template to Make.config and use the default, it still fails.
--- Make.config.template.orig 2007-08-12 16:50:32.000000000 -0700
+++ Make.config.template 2007-08-12 16:51:25.000000000 -0700
@@ -26,7 +26,8 @@
#DVBDIR = /usr/src/v4l-dvb/linux
MANDIR = /usr/local/man
BINDIR = /usr/local/bin
-LOCDIR = /usr/share/vdr/locale # set to ./locale to run VDR from within its source directory
+# Set LOCDIR to ./locale to run VDR from within its source directory
+LOCDIR = /usr/share/vdr/locale
PLUGINDIR= ./PLUGINS
PLUGINLIBDIR= $(PLUGINDIR)/lib
Regards.