freebsd 7.0 and jail

Hello:

I am trying to build jails on 7.0 system and got errors:

/////////////////////////////////////////////

>>> Installing everything
--------------------------------------------------------------
cd /usr/src; make -f Makefile.inc1 install
===> share/info (install)
===> lib (install)
===> lib/csu/i386-elf (install)
gcc -O2 -fno-strict-aliasing -pipe  -I/usr/src/lib/csu/i386-elf/../common  -I/usr/src/lib/csu/i386-elf/../../libc/include -Wsystem-headers -Wall -Wno-format-y2k -W -Wno-unused-parameter -Wstrict-prototypes -Wmissing-prototypes -Wpointer-arith -Wreturn-type -Wcast-qual -Wwrite-strings -Wswitch -Wshadow -Wcast-align -Wunused-parameter -Wchar-subscripts -Winline -Wnested-externs -Wredundant-decls -Wno-pointer-sign -c crt1.c
gcc:No such file or directory
*** Error code 1

Stop in /usr/src/lib/csu/i386-elf.
*** Error code 1

Stop in /usr/src/lib.
*** Error code 1

Stop in /usr/src.
*** Error code 1

Stop in /usr/src.
*** Error code 1

Stop in /usr/src.
*** Error code 1

///////////////////////////////////

looks like the code of jail is broken, did anyone have similar problem?

I am working in an environment that is able to use "freebsd-update" script.

Thanks in Advance