>...provide some more lines from above it.

It looks like it bombs right about here:
(hope it's enough...)

<snip> in:
make -C ffmpeg/libavcodec libavcodec.a
<snip>...
In file included from i386/dsputil_mmx.c:30:
i386/mmx.h:24:2: warning: #warning Everything in this header is deprecated, use plain asm()! New code using this header will be rejected.
i386/h264dsp_mmx.c: In function `put_h264_qpel4_h_lowpass_3dnow':
i386/h264dsp_mmx.c:1881: error: can't find a register in class `GENERAL_REGS' while reloading `asm'
make[6]: *** [i386/dsputil_mmx.o] Error 1
make[6]: Leaving directory `/usr/local/src/xine-lib-1.2/contrib/ffmpeg/libavcodec'
make[5]: *** [ffmpeg/libavcodec/libavcodec.a] Error 2
make[5]: Leaving directory `/usr/local/src/xine-lib-1.2/contrib'
make[4]: *** [../../../contrib/ffmpeg/libavcodec/libavcodec.a] Error 2
make[4]: Leaving directory `/usr/local/src/xine-lib-1.2/src/combined/ffmpeg'
make[3]: *** [all] Error 2
make[3]: Leaving directory `/usr/local/src/xine-lib-1.2/src/combined/ffmpeg'
make[2]: *** [all-recursive] Error 1
make[2]: Leaving directory `/usr/local/src/xine-lib-1.2/src/combined'
make[1]: *** [all-recursive] Error 1
make[1]: Leaving directory `/usr/local/src/xine-lib-1.2/src'
make: *** [all-recursive] Error 1

display mangler  ->gone<-
Mmmmmm... better.
A pair of CPUs say thanks !