I'm baffled by this one. I tried to compile GCC 4.5.2 on Ubuntu but just got too many errors. I also tried to install Arch Linux but Virtualbox was not cooperating, so gave up on that too.
Are either of you able to disassemble the object file and see what the compiler is doing to the delay function?
I wonder if the compiler is misconfigured or picking up a delay function from some other header somewhere... Does Arch set any environment variables that might interfere with GCC, like CFLAGS, CXXFLAGS, C_INCLUDE_PATH, CPLUS_INCLUDE_PATH and LIBRARY_PATH ?