configure: error: can't build without PostgreSQL libraries

Hello, I'm trying to build psycopg-1.1.21 on mac 10.4.11 intel
machine. Has anybody ran into this issue before and if so how can I
get this to work?

Thanks for your help,
Matt

$ ./configure --with-postgres-includes=/usr/local/pgsql/include/
--with-mxdatetime-includes=/Library/Frameworks/Python.framework/Versions/2.4/lib/python2.4/site-packages/mx/DateTime/mxDateTime/
--with-postgres-libraries=/usr/local/pgsql/lib/
checking for python...
/Library/Frameworks/Python.framework/Versions/2.4/bin/python
checking python version... 2.4
checking python installation prefix...
/Library/Frameworks/Python.framework/Versions/2.4
checking python installation exec_prefix...
/Library/Frameworks/Python.framework/Versions/2.4
checking definitions in Python library makefile... done
checking location of python library... $(prefix)/lib/python2.4/site-packages
checking location of python shared modules...
$(exec_prefix)/lib/python2.4/site-packages
checking for gcc... gcc
checking for C compiler default output file name... a.out
checking whether the C compiler works... yes
checking whether we are cross compiling... no
checking for suffix of executables...
checking for suffix of object files... o
checking whether we are using the GNU C compiler... yes
checking whether gcc accepts -g... yes
checking for gcc option to accept ANSI C... none needed
checking how to run the C preprocessor... gcc -E
checking whether make sets $(MAKE)... yes
checking for inline... inline
checking PostgreSQL version... 8.2
checking PostgreSQL type catalog...
/usr/local/pgsql/include//server/catalog/pg_type.h
checking for mxDateTime.h... yes
checking for main in -lcrypt... no
checking for main in -lcrypto... yes
checking for PQconnectStart in -lpq... no
configure: error: can't build without PostgreSQL libraries