Here it stops: /bin/sh ../../libtool --silent --mode=link --tag=CXX g++ -Wnon-virtual-dtor -Wno-long-long -Wundef -Wall -W -Wpointer-arith -Wwrite-strings -ansi -D_XOPEN_SOURCE=500 -D_BSD_SOURCE -Wcast-align -Wconversion -Wchar-subscripts -DNDEBUG -DNO_DEBUG -O2 -march=pentium3 -O2 -pipe -fomit-frame-pointer -Wformat-security -Wmissing-format-attribute -fno-exceptions -fno-check-new -fno-common -DQT_CLEAN_NAMESPACE -DQT_NO_ASCII_CAST -DQT_NO_STL -DQT_NO_COMPAT -DQT_NO_TRANSLATION -o libkwireless.la -rpath /usr/kde/3.2/lib -module -avoid-version -L/usr/X11R6/lib -L/usr/qt/3/lib -L/usr/kde/3.2/lib kwireless.lo kwirelesswidget.lo linuxwirelesswidget.lo propertytable.lo propertytablebase.lo -liw -lkdeui /usr/lib/gcc-lib/i686-pc-linux-gnu/3.2.3/../../../../i686-pc-linux-gnu/bin/ld: cannot find -liw collect2: ld returned 1 exit status make[3]: *** [libkwireless.la] Error 1 make[3]: Leaving directory `/var/tmp/portage/kdenetwork-3.2.0_beta1/work/kdenetwork-3.1.93/wifi/kwireless' make[2]: *** [all-recursive] Error 1
This means that configure for this package detected the file iwlib.h installed. I presume this is because you have this wireless library installed? Can you find this file and track down the package it came from? You'll either need to remove this package (and iwlib.h) or re-merge it so that you can get the library installed.
Yes, iwlib.h is in wireless-tools. Unmerging wireless-tools and emerging kdenetwork worked.
fixed by reporter