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.