This is what I get if I try to extract the tar.gz file:

$ tar zxf Log-WithCallbacks-1.00.tar.gz
tar: Log-WithCallbacks-1.00/lib/Log: Cannot mkdir: Permission denied
tar: Log-WithCallbacks-1.00/lib/Log/WithCallbacks.pm: Cannot open: Per
+mission denied
tar: Log-WithCallbacks-1.00/html/docs.css: Cannot open: Permission den
+ied
tar: Error exit delayed from previous errors
[download]

The problem seems to be that the directories in the archive are non-executable:

$ tar vztf Log-WithCallbacks-1.00.tar.gz
drw-rw-rw- Mark/             0 2005-09-29 22:04:53 Log-WithCallbacks-1
+.00
drw-rw-rw- Mark/             0 2005-09-29 22:04:53 Log-WithCallbacks-1
+.00/html
drw-rw-rw- Mark/             0 2005-09-29 22:04:53 Log-WithCallbacks-1
+.00/lib
-rw-rw-rw- Mark/           549 2005-09-29 21:22:29 Log-WithCallbacks-1
+.00/Makefile.PL
-rw-rw-rw- Mark/           106 2005-09-29 22:02:18 Log-WithCallbacks-1
+.00/MANIFEST
-rw-rw-rw- Mark/           328 2005-09-29 22:04:52 Log-WithCallbacks-1
+.00/META.yml
drw-rw-rw- Mark/             0 2005-09-29 22:04:53 Log-WithCallbacks-1
+.00/t
-rw-rw-rw- Mark/           573 2005-09-29 21:56:03 Log-WithCallbacks-1
+.00/t/Basic.t
drw-rw-rw- Mark/             0 2005-09-29 22:04:53 Log-WithCallbacks-1
+.00/lib/Log
-rw-rw-rw- Mark/          9548 2005-09-29 21:54:30 Log-WithCallbacks-1
+.00/lib/Log/WithCallbacks.pm
-rw-rw-rw- Mark/          2226 2003-05-02 06:35:52 Log-WithCallbacks-1
+.00/html/docs.css
[download]

I've never had this problem with makemaker myself, but maybe you should check the permissions in your source tree first...