[SOLVED] Teacup firmware problem - "Build terminated Abnormally"

[Refrigerator]

I decided to use the teacup firmware along with an arduino nano to control my 3d printer that i'm making.
I followed the tutorial on the teacup firmware and all was good untill it gave me a "Build terminated Abnormally" message when i tried to build my settings.

avr-gcc.exe -c -DF_CPU=16000000UL -mmcu=atmega328p -Wall -Wstrict-prototypes -std=gnu99 -funsigned-char -funsigned-bitfields -fpack-struct -fshort-enums -Winline -fno-move-loop-invariants -fno-tree-scev-cprop -Os -ffunction-sections -finline-functions-called-once -mcall-prologues -Wa,-adhlns="C:\Documents and Settings\2029-pc\My Documents\teacup\Teacup_Firmware-master\build\analog-arm.al" -save-temps=obj -o "C:\Documents and Settings\2029-pc\My Documents\teacup\Teacup_Firmware-master\build\analog-arm.o" "C:\Documents and Settings\2029-pc\My Documents\teacup\Teacup_Firmware-master\analog-arm.c"
Exception occurred trying to run

avr-gcc.exe -c -DF_CPU=16000000UL -mmcu=atmega328p -Wall -Wstrict-prototypes -std=gnu99 -funsigned-char -funsigned-bitfields -fpack-struct -fshort-enums -Winline -fno-move-loop-invariants -fno-tree-scev-cprop -Os -ffunction-sections -finline-functions-called-once -mcall-prologues -Wa,-adhlns="C:\Documents and Settings\2029-pc\My Documents\teacup\Teacup_Firmware-master\build\analog-arm.al" -save-temps=obj -o "C:\Documents and Settings\2029-pc\My Documents\teacup\Teacup_Firmware-master\build\analog-arm.o" "C:\Documents and Settings\2029-pc\My Documents\teacup\Teacup_Firmware-master\analog-arm.c"
Build terminated abnormally.

I tried looking into solving this issue but after finding and reading some discussion about it i'm still lost.
I have almost the same settings as here : http://reprap.org/wiki/File:Teacup_Configtool_Settings.png the only difference being i have my Arduino directory field empty, in which case it should find the required files automatically.
I'm about as smart as a bag of rocks when it comes to software/firmware so help would be appreciated.
Thanks.

[andersm]

Try running the failing command from the command line, so you'll get the real error message.

[sleemanj]

difference being i have my Arduino directory field empty, in which case it should find the required files automatically

Sounds to me like it's not, at least avr-gcc.exe probably isn't in the path and when it attempts to execute it, it fails.

Feed it the appropriate base directory for your arduino installation.

[Refrigerator]

Almost made it to work.
Wrote "C:\Program Files\Arduino" into the field and it looked like it helped but then the build terminated.
First i get

ld.exe has encountered a problem and needs to close.  We are sorry for the inconvenience.

And then.

RC = 1 - Build terminated
Link terminated abnormally.

EDIT:

After a quick read on the ld.exe crashes it only happens to WinXP users and only started happening with newer Arduino IDE versions, but it happens to those who try are just programming with arduino and not using any firmwares, seems odd since i've been playing with my arduino nano on my WinXp laptop without any ld.exe crashes yet. I remember seeing a message in the installer regarding possible issues that can occur while using ArduinoIDE on old Xp machines.
A bit more reading reveals that this issue is due too many variables.

[Refrigerator]

Uninstalled current version of arduino IDE and installed ArduinoIDE 1.0.6 and everything works fine and dandy. 
Except for uploading, seems like avrdude.exe can't find where my nano is plugged in.