When doing a 'emerge system' on a fresh gentoo 1.2 stage1 install i recieved an error saying that the dirrectory blah/grub/i386-pc could not be found and this caused the emerge to halt. The actualy dirrector that was there was i386- crusoe in correct relation to my make.conf declaration of CHOST="i686-crusoe- linux-pc". So i believe that the GRUB ebuild is not correctly reading the CHOST. Or i was not susposed to change the value of CHOST in said way.
Many things will not support your CHOST setting, although most will build fine. Grub is the exception that will fail to build. Rather use CHOST="i686-pc-linux-gnu" if not too much trouble ?