I'm going to do my best to describe the issue here, not really sure what information is needed..as I'm rather new at this.

I've got a chroot jail setup and working wonderfully, the only issue I have is, when I'm in as one of the jailed users, I can't compile. when I run a make file, it tosses pages of errors...yet when I'm in as root everything works fine. I've set the jailed user as owner, totally opened up permissions on all the files...still doesn't work. My only guess is, GCC isn't working inside the jail...

If anyone out there can offer any insight I'd be quite thankful.

gcc and its associated programs have a lot of paths set in configuration files, namely "spec" files. You would need to change these to get it going inside a chroot jail. It would be quite complicated to get it going I think, and then it wouldn't work for non-jailed users. Perhaps you could install a copy just for your jailed users. Have a look at the instructions for building a system from www.linuxfromscratch.org. There you will find intstructions on building a gcc that works from a /tools directory rather than /bin etc. That might give you some ideas. Bit of a job I susspect.