Ok I good to go. I just entered the path in and made a variable called PERL with a value of perl. Not sure if that last part is needed but I had to do that with FLEX if I remeber correctly.
I installed perl as seen below. I than ran my configre and make install from the same prompt that you see below. However I still get the error message.
$ perl --version
This is perl, v5.8.7 built for MSWin32-x86-multi-thread (with 7 registered patches, see perl -V for more detail)
Copyright 1987-2005, Larry Wall
Binary build 813 [148120] provided by ActiveState http://www.ActiveState.com ActiveState is a division of Sophos. Built Jun 6 2005 13:36:37
Perl may be copied only under the terms of either the Artistic License or the GNU General Public License, which may be found in the Perl 5 source kit.
Complete documentation for Perl, including FAQ lists, should be found on this system using `man perl' or `perldoc perl'. If you have access to the Internet, point your browser at http://www.perl.org/, the Perl Home Page.