This means that once you've downloaded and installed the empeg toolchain onto your Linux system, you need to modify the path so that when you try to build empeg programs, the build system can find the compiler. Again, the PATH is used to find programs whose locations are not explicitly given on the command line.

In addition, the thing about cc1 is that, while the vast majority of the empeg toolchain programs will be given names like arm-empeg-linux-gcc, the cc1 program will not get that prefix. cc1 is, IIRC, the engine that does most of the compiling work, while the other binaries are, more or less, wrappers around it. The problem being that your real system compiler could potentially get confused about which cc1 binary to use and start trying to build weird non-functional Frankenstein-like binaries for your system.

However, I'm guessing that since you're totally in the dark about all of this, that you probably don't have a Linux box to be doing all of this on. It seems like one of the empeg guys had built something very similar up for Windows and had posted instructions on this board somewhere, but I don't now remember precisely who it was or exactly how to find those instructions.
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Bitt Faulk