Mike,
I tried the makefile you suggested. Man how confusing. I always believed that the creators of makefiles are not from here. Now I am convinced. A normal guy like me will have no hope to fix any problems. As it is, it does not work for me. I get this error no matter what I try.
C:\arduino-0022\projects\Firmware>make
/usr/bin/sh: cd: C:/arduino-0022/projects/Firmware/../../../..: No such file or directory
makefile:56: *** ERROR: cannot determine sketchbook location - please specify on the commandline with SKETCHBOOK=<path>. Stop.
And when I specify on the command line I get the same.
It will be really magic if we could get a makefile that compiles Arduino sketches form a decent editor.