global pointer relative offset

It doesn't look like the -G0 option is really being used here. This option stops the compiler using gp relative addressing, and so should make it impossible to get the error you're showing.

Looking at the make output that you've included, the -G0 seems to be missing (Note this is -G0 and not -g0).

Make sure that you've really saved the change to the project, and try doing "generate build tree" and build "Clean" from the "Build" menu in configtool to make sure that you flush out any old settings.