The problem is in the depend part of the makefile.
here's the correct part.
	Code:
	.depend depend:
        for f in $(SF); \
        do \
                i=`echo $$f | sed -e 's#.obj/#../common/#g' -e 's/\.o/.cpp/g' `; \
                gcc -MM $(COPTS) $(PERL_FLAGS) $$i | sed "s#^[^ ]*:#$$f:#g"; \
        done  >.depend
 just removed the ` around $(PERL_FLAGS)
However it doesn't make any difference in the resulting .depend file.