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This patch applies cleanly to today's CVS head.

If building in the source directory while cross compiling
fails, please make configure complain about it.

This patch makes the build process invoke make recursively,
which is a big minus.  I'd rather see pgen built with a
HOSTCC and just assume python is available on $PATH for the
setup.py step.  There's no reason to build all the shared
modules in buildpython, either, which would speed things up
a fair bit.

On to how it worked for me:
Not cross-compiling, this produces no unexpected test
failures in "make test". (redhat9)

Cross compiling for i386-pc-bsdi2.1 everything goes fine
until it tries to run buildpython and make shared modules,
but shared modules don't work in the first place on bsdi2. 
I did not test the resulting Python binary.

Cross compiling for i386-redhat-linux (libc6) some
extensions fail to build, but this could be because my
header files for the cross-development environment are not
complete.  Running "make test" tries to invoke the
"buildpython/python" and doesn't work.  Running it manually
I get some skips due to modules that did not build, but
everything that did build seems to pass. (OK, so I wrote
this before the tests completed, but they're off to a good
start)

I currently cross-compile python 2.3 for win32 (mingw), and
until recently cross-compiled it for bsdi2 and redhat6. 
However, I did not use configure or the included makefiles
to do this (in order to integrate in a non-recursive build
procedure that builds several packages), so this patch is
unlikely to benefit me directly.

I don't think this patch is ready to be applied.