The WRONG versions of the binutils were in /usr/bin, with symlinks in
/usr/i486-linux/bin (as, ld, nm, etc). The correct versions were not
installed via 'make install' in the binutils directory, and I hadn't
checked (well) enough to notice it.
So, with the binutils-2.8.0.3 stuff properly in place, I can build a
workable kernel (it boots and runs...) although I don't have any SMP
system, just a SMP kernel.