Things went wrong during perl Makefile.PL.

It tries to execute the mysql_config command, which should be in C:\Progra~1\MySQL\bin (check it?). This command returns the correct paths used by mysql (what the lib directory, is the include dir, ...).

What you failed to do is add the C:\Progra~1\MySQL\bin to the PATH-environment variable (you can do this in the autoxexc.bat/nt file and/or via my computer (somewhere there is an option to do that).