[Help] INSTALLing 7.02

Hi,
If anyone out there would be so kind as to point out what may be the
problem I would appreciate it immensely.
(PS - I tried without the --with-CC and got the same error at the same
place)

./configure --with-CC=/usr/opt/SUNWmd/sbin/cc
loading cache ./config.cache
checking host system type... sparc-sun-solaris2.7
checking echo setting...
checking setting template to... solaris_sparc_gcc
checking whether to support locale... disabled
checking whether to support cyrillic recode... disabled
checking whether to support multibyte... disabled
checking setting DEF_PGPORT... 5432
checking setting DEF_MAXBACKENDS... 32
checking setting USE_TCL... disabled
checking setting USE_PERL... disabled
checking setting USE_ODBC... disabled
checking setproctitle... disabled
checking setting ASSERT CHECKING... disabled
checking for gcc... /usr/opt/SUNWmd/sbin/cc
checking whether the C compiler (/usr/opt/SUNWmd/sbin/cc ) works... no
configure: error: installation or configuration problem: C compiler
cannot create executables.