If this is Cygwin, I had a very similar problem until someone suggested setting the CYGWIN environment variable to nontsec. Once that environment variable was set to that value, the problem went away. I think another solution was to place the module source within the Cygwin tree, somewhere below "~" .

I could be mistaken, but it seems that you've placed the XML-LibXML-1.70 source inside a perl installation. That's not a good idea (though it won't necessarily break anything). Best to put the sources somewhere separate - eg C:/builds or ~/builds or somesuch.

Cheers,
Rob