some of the guide is very unclear and very confusing
What parts are you referring to? I think I clearly stated that configuring the build environment on a clean vm is recommended. As you are using gcc-3.4.4-3-msys I suggest you remove C:\MinGW completely and reinstall MinGW by selecting only the packages mentioned at step 1.1 (msys-base-bin, msys-autoconf-bin, msys-automake-bin, msys-libtool-bin).