this bug is a duplicate of bug #5452. gnome-vfs-2.6.0 failed during configure.
checking for bzlib.h... no
configure: error: Gnome-vfs requires libbz2 to compile.
emerge info please.
Why, you may wonder? well, bzip2 is in the system profile for at least x86-2004.0 and if you don't have that, and we cannot ascertain your systems info, then I Have to assume that its a user error that the whole of "system" is not installed.
strange. This error come up during process build catalyst livecd stage1. I am using catalyst-1.0.5 with the latest postage snapshot.
It is indeed "user error". I specified a source_path to a stage2 tarball by mistake. changed to stage3 solve my problem. Thanks.