I'm stumped. The problem is with my chroot environment.
I spent the past few hours whittling away at both the chroot environment and the virtual machine trying to find the difference. Currently, as far as package installations go, the two machines are identical.
Granted, although sandboxed, the chroot is not perfectly isolated like the virtual machine. Something is confusing the build process in the chroot environment that the virtual machine can't see. A chroot environment is not supposed to be able to see above/outside its internal root level. Thus I don't know what the chroot environment sees that the virtual machine can't.
I can build in the virtual machine but as I mentioned previously, the build process is slower than on physical hardware. I wanted the chroot environment so I could use the physical hardware and build faster.
I'll see how far I get rebuilding arts and kdelibs in the virtual machine. Then I'll try kdebase with your changes from a couple of days ago. I'll keep troubleshooting with the chroot environment too.
With that said, I am attaching a new log of the failed arts build in the chroot environment. Perhaps something there might provide you a clue where I can troubleshoot or what might cause arts to fail in one environment but not the other.
Oops. I forgot to attach the log!