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Many people have been using gcc-3.2 or later to build kernels, and ISame here. I've been using gcc3.2.0 and beyond currently 3.3.2 since the day they were released and never had any big issues. I would recomend using gcc 3.3.2 since it improves performance when using optimizations quite a bit as far as I can remember the statistics.
haven't really heard of any problems with this, at least on i386. I
personally have used 3.2.2 and 3.3.2 (well, with Debian's patches) and
haven't had any weirdness with 2.6 or 2.4. ISTR there being arches that
need 3.x to compile, but I could be mistaken.
2.95.3 is definitely the *oldest* compiler you'd want to use, and pretty
much skip between that and 3.2.
Matt