xfree emerge problem

I am trying to bring up a desktop with a p2 450 processor, 128 megs ram,
256 meg swap partition.

I am trying to emerge /usr/portage/x11-base/xfree/xfree-4.2.0.r12.ebuild.

(when I --pretend emerge it, it has no dependencies, except for itself)

I am using xfs partitions, except for boot, which is ext2.

I am using some kernel optimizations (low latency, etc...)

I dont think that any of that is the problem though, as you will see, it
is a problem with a simple "cp"

Here is the end segement of the emerge process:
.
.
.
+ rm -f /var/tmp/portage/xfree-4.2.0-r12/image//usr/X11R6/lib/libXft.so.1
+ ln -s libXft.so.1.1 /var/tmp/portage/xfree-4.2.0-r12/image//usr/X11R6/lib/libXft.so.1
+ rm -f /var/tmp/portage/xfree-4.2.0-r12/image//usr/X11R6/lib/libXft.so
+ ln -s libXft.so.1.1 /var/tmp/portage/xfree-4.2.0-r12/image//usr/X11R6/lib/libXft.so
install -c -m 0644 libXft.a /var/tmp/portage/xfree-4.2.0-r12/image//usr/X11R6/lib
ranlib  /var/tmp/portage/xfree-4.2.0-r12/image//usr/X11R6/lib/libXft.a
+ mkdir -p /var/tmp/portage/xfree-4.2.0-r12/image//usr/X11R6/include/X11/Xft
+ install -c -m 0444 Xft.h /var/tmp/portage/xfree-4.2.0-r12/image//usr/X11R6/include/X11/Xft
+ install -c -m 0444 XftFreetype.h /var/tmp/portage/xfree-4.2.0-r12/image//usr/X11R6/include/X11/Xft
+ install -c -m 0444 XftConfig /var/tmp/portage/xfree-4.2.0-r12/image//usr/X11R6/lib/X11/XftConfig
+ mkdir -p /var/tmp/portage/xfree-4.2.0-r12/image//etc/X11
cp: `XftConfig': Argument list too long
make[3]: *** [install] Error 1
make[3]: Leaving directory `/var/tmp/portage/xfree-4.2.0-r12/work/xc/lib/Xft'
make[2]: *** [install] Error 2
make[2]: Leaving directory `/var/tmp/portage/xfree-4.2.0-r12/work/xc/lib'
make[1]: *** [install] Error 2
make[1]: Leaving directory `/var/tmp/portage/xfree-4.2.0-r12/work/xc'
make: *** [install] Error 2

!!! ERROR: The ebuild did not complete successfully.
!!! Function src_install, Line 9, Exitcode 2
!!! (no error message)

 ...done!
>>> emerge x11-base/xfree-4.2.0-r12 to /
>>> md5 ;-) X420src-1.tgz
>>> md5 ;-) X420src-2.tgz
>>> md5 ;-) X420src-3.tgz
>>> md5 ;-) freetype-2.0.9.tar.bz2
>>> md5 ;-) truetype.tar.gz
>>> md5 ;-) 4.2.0-xlib-i18n-module.patch
>>> md5 ;-) 4.2.0-zlib-security.patch
>>> md5 ;-) 4.2.0-libGLU-bad-extern.patch
>>> md5 ;-) xf86Wacom.c.gz


Here is my /etc/make.conf file, if it matters:

# Copyright 2000-2002 Daniel Robbins, Gentoo Technologies, Inc.
# Contains system settings for Portage system

# Download sites

# The main Gentoo Linux source mirror; specify as many space-separated mirrors
# as you like.
GENTOO_MIRRORS="http://www.ibiblio.org/gentoo"
# The main Gentoo Linux Portage server; specify a single Portage server.
#SYNC="rsync://rsync.gentoo.org/gentoo-portage"
# An alternate download server if you prefer anoncvs.  emerge dev-util/cvs
# for cvs support in emerge.  The password for this CVS server is empty --
# just hit Enter.
#SYNC="cvs://:pserver:[email protected]:/home/anoncvs"

# Build-time functionality

USE="-gnome perl -kde -cups -3dnow fbcon -qt -qtmt -arts -sdl dvd -apm
xml -slang mysql acl -nls doc"
# USE options are inherited from /etc/make.profile/make.defaults.  To turn a USE
# setting off, add a "-setting" to the USE variable here.  To enable a setting,
# add the setting name to the USE variable here.  Separate USE toggles with 
# whitespace.
......
no cpu optimizations....
......


Thank you preemptively,
gabe