Solaris 8 2/04 with GCC 3.4.0 (SMCgcc build) and
both installed in /usr/local.
Ones gets (also on 3.0.5pre1)
configure: WARNING: Sufficient support for iconv function was not found.
regardless whether --with-libiconv=/usr/local is specified or not.
LD_LIBRARY_PATH=/usr/local/lib has to be in the configure environment
for the iconv detection to succeed.
Having just CPPFLAGS=-I/usr/local/include LDFLAGS=-L/usr/local/lib is not enough.
I am placing it as an installation problem, but it might be
just as well only a documentation one.
you can use the crle tool to encode library search paths
or you can use the -R<path> to the linker to encode the
search path in the resulting binary.