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This is a problem with the Makefile shipped with Python
2.3.4. It has been fixed in 2.4. You can either install
mkhowto as described in
http://docs.python.org/doc/tools-internal.html, or uncomment
this line:

#MKHOWTO=   TEXINPUTS=$(TEXINPUTS) $(PYTHON)
$(PWD)/tools/mkhowto

and comment this line:

MKHOWTO=   TEXINPUTS=$(TEXINPUTS) mkhowto