You don't have a C compiler installed! You can find it (gcc) in your CD/DVD of Panther or, maybe, you can have the installer package already on your HD (for this second possibility try to write locate gcc in the terminal and look in which directory it is. Enter in the directory and click 2 times on the package). Unfortunaly I have an italian version of panther, so I don't know the exacly name of package that you must install from CD/DVD if you will not find already on your Mac, however something like '[something] MacOS 9 and developer tools'. After the installation you must find the package of gcc to install on your HD: with sherlock or, in terminal, find / -name gcc*
Sorry for my baaaaad english!!
Ocimin