I have what I assume is the same problem that was discussed in http://www.keil.com/forum/docs/thread5803.asp . I installed Keil in c:\Program Files\Keil and building the blinky demo project gives:
Build target 'LPC2106' assembling Startup.s... Assembler messages: Error: Error: can't open Files\Keil\ARM\INC\Philips\ for reading Files\Keil\ARM\INC\Philips\: No error compiling Blinky.c... arm-uclibc-gcc: cannot specify -o with -c or -S and multiple compilations Target not created
The problem seems to be the space in the c:\Program Files part of the path, so I thought I would copy the relevant include files to somewhere that gcc wont have any problems with. Unfortunately, c:\ProgramFiles\Keil seems to be set up in the toolchain somewhere so that the I can't override it in the project settings :(. I suspect it's in the Keil\tools.ini file, which I am reluctant to edit without more knowledge. Am I on the right track?