In the m68k directory under lib/libcompat/4.3 there is the
	   insque.S file. When making libcompat on an m68k box, amiga to
	   be specific, the make dies whining about an inability to turn
	   a .S in to a .s file. Now it seemed to know how to do it in
	   libc just a few hundred compiles before so what gives?

I have no problem with this on my hp300.  Could you send the exact
output of make(1)?

Also, are you *sure* your /usr/share/mk and /usr/src/lib/libcompat are
completely up to date?