Could you point me in the right direction?

I have GNUwin32, and added the path to it's lib and include directories, but still nags about lib missing. I even tried just copying the files to the mydatasrc, and it seemed ok, until it got circular. First it asked for jpeglib.h and then jconf.h etc, until it just flat-out said it can't open jpeglib.h anymore

Currently I get up to here:

c:\Perl\test\Image-TestJPG-1.0\Image-TestJPG-1.0>perl Makefile.PL
Checking if your kit is complete...
Looks good
Note (probably harmless): No library found for -ljpeg
MakeMaker (v6.56)
Writing Makefile for Image::TestJPG::mydatasrc
Writing Makefile for Image::TestJPG

c:\Perl\test\Image-TestJPG-1.0\Image-TestJPG-1.0>nmake

Microsoft (R) Program Maintenance Utility Version 9.00.21022.08
Copyright (C) Microsoft Corporation.  All rights reserved.

cp TestJPG.pm blib\lib\Image\TestJPG.pm
        cd mydatasrc && c:\PROGRA~2\MICROS~1.0\VC\BIN\nmake.exe

Microsoft (R) Program Maintenance Utility Version 9.00.21022.08
Copyright (C) Microsoft Corporation.  All rights reserved.

        cl -c    -nologo -GF -W3 -MD -Zi -DNDEBUG -O1 -DWIN32 -D_CONSO
+LE -DNO_ST
RICT -DHAVE_DES_FCRYPT -DUSE_SITECUSTOMIZE -DPRIVLIB_LAST_IN_INC -DPER
+L_IMPLICIT
_CONTEXT -DPERL_IMPLICIT_SYS -DUSE_PERLIO -DPERL_MSVCRT_READFIX -MD -Z
+i -DNDEBUG
 -O1    -DVERSION=\"\"  -DXS_VERSION=\"\"  "-IC:\Perl\lib\CORE"   myda
+tasrc.c
mydatasrc.c
c:\perl\test\image-testjpg-1.0\image-testjpg-1.0\mydatasrc\jinclude.h(
+20) : fata
l error C1083: Cannot open include file: 'jconfig.h': No such file or 
+directory
NMAKE : fatal error U1077: '"c:\Program Files (x86)\Microsoft Visual S
+tudio 9.0\
VC\BIN\cl.EXE"' : return code '0x2'
Stop.
NMAKE : fatal error U1077: 'cd' : return code '0x2'
Stop.
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I have GNUwin32, and added the path to it's lib and include directories, but still nags about lib missing.

How did you do that? Did you edit Makefile.PL or edit your env? A Practical Guide to Compiling C based Modules under ActiveState using Microsoft C++