source headers don't come first in include path

Building FLAC 1.2.0 fails on FreeBSD 6.2 with GCC 3.4.6 and gmake 3.81.

Attached is config.log

Here's the last output from the build process before it fails:
gmake[4]: Entering directory `/home/user/tmp/flac-1.2.0/src/libFLAC'
if /bin/sh ../../libtool --mode=compile gcc -DHAVE_CONFIG_H -I. -I. -I../.. -I/usr/local/include -I../.. -I./include -I../../include -DNDEBUG -O3 -funroll-loops -finline-functions -Wall -W -Winline -DFLaC__INLINE=__inline__ -g -O2 -MT format.lo -MD -MP -MF ".deps/format.Tpo" \
-c -o format.lo `test -f 'format.c' || echo './'`format.c; \
then mv -f ".deps/format.Tpo" ".deps/format.Plo"; \
else rm -f ".deps/format.Tpo"; exit 1; \
fi
gcc -DHAVE_CONFIG_H -I. -I. -I../.. -I/usr/local/include -I../.. -I./include -I../../include -DNDEBUG -O3 -funroll-loops -finline-functions -Wall -W -Winline -DFLaC__INLINE=__inline__ -g -O2 -MT format.lo -MD -MP -MF .deps/format.Tpo -c format.c -fPIC -DPIC -o .libs/format.o
format.c:491: error: syntax error before '*' token
format.c:492: warning: type qualifiers ignored on function return type
format.c:492: warning: return type defaults to `int'
format.c: In function `FLAC__format_picture_is_legal':
format.c:496: error: `picture' undeclared (first use in this function)
format.c:496: error: (Each undeclared identifier is reported only once
format.c:496: error: for each function it appears in.)
format.c:498: error: `violation' undeclared (first use in this function)
gmake[4]: *** [format.lo] Error 1
gmake[4]: Leaving directory `/home/user/tmp/flac-1.2.0/src/libFLAC'
gmake[3]: *** [all-recursive] Error 1
gmake[3]: Leaving directory `/home/user/tmp/flac-1.2.0/src/libFLAC'
gmake[2]: *** [all-recursive] Error 1
gmake[2]: Leaving directory `/home/user/tmp/flac-1.2.0/src'
gmake[1]: *** [all-recursive] Error 1
gmake[1]: Leaving directory `/home/user/tmp/flac-1.2.0'
gmake: *** [all] Error 2