diff -Naur glib-2.18.1/configure.in glib-2.18.1.new/configure.in
--- glib-2.18.1/configure.in	2008-09-18 04:04:01.000000000 +0530
+++ glib-2.18.1.new/configure.in	2008-09-25 09:35:47.000000000 +0530
@@ -490,6 +490,8 @@
 AM_DISABLE_STATIC
 AC_LIBTOOL_WIN32_DLL
 AM_PROG_LIBTOOL
+dnl create ./libtool early because it's used in configure
+m4_ifdef([LT_OUTPUT], [LT_OUTPUT])
 
 if test "x$GCC" = "xyes"; then
   case " $CFLAGS " in