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I used the same makefile given in the folder with the hello.c program and did not edit the Rules.mak
The code for the rules.mak:[/b]
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I think that you meant Makefile because this is the code of the makefile.
I think that the problem is :
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TOPDIR = ..[/b]
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That means that the path of your Rules.mak file is one directory above the project's directory.
If the Rules.mak and Makefile are in the same directory then you must change the TOPDIR to :
TOPDIR = ./