[yocto] Can not build (configure) a simple Hello world program in eclipse with ADT

[Thanassis Silis]

hello everyone,
I am following the yocto Project Devel Manual ( http://www.yoctoproject.org/docs/1.4/dev-manual/dev-manual.html#adt-eclipse
 ) to set up eclipse for use with an embedded target . I am stuck in 
section 4.2.2.2 trying to make a simple autotools hello world 
application. The build fails at configure stage 

checking for style of include used by make... GNU
checking
 for arm-poky-linux-gnueabi-gcc... arm-poky-linux-gnueabi-gcc  
-march=armv7-a -mthumb-interwork -mfloat-abi=softfp -mfpu=neon 
--sysroot=/home/nass/yocto/build/tmp/sysroots/imx6qsabrelite
checking whether the C compiler works... no
configure: error: in `/home/nass/eclipse/adt_hello/':
configure: error: in `/home/nass/eclipse/adt_hello/':
configure: error: C compiler cannot create executables
configure: error: C compiler cannot create executables
See `config.log' for more details

Configuration failed with error

config.log looks fairly similar to this post: https://lists.yoctoproject.org/pipermail/yocto/2013-January/013860.html

I have configured to use the toolchain from the build directory. In fact the paths to the toolchain and sysroots are (both): 
"/home/nass/yocto/build/tmp/" .

I
 went on to try the slightly more manual in CLI :  
http://www.yoctoproject.org/docs/1.4/adt-manual/adt-manual.html#creating-and-running-a-project-based-on-gnu-autotools
 

again at configure  stage, I get:
 
checking
 for gcc... arm-poky-linux-gnueabi-gcc  -march=armv7-a -mthumb-interwork
 -mfloat-abi=softfp -mfpu=neon 
--sysroot=/home/nass/yocto/build/tmp/sysroots/imx6qsabrelite
checking whether the C compiler works... yes
checking for C compiler default output file name... a.out
checking for suffix of executables... 
checking whether we are cross compiling... configure: error: in `/home/nass/appz/dev/yoctauto':
configure: error: cannot run C compiled programs.
If you meant to cross compile, use `--host'.
See `config.log' for more details

Should
 I really use --host? Wouldn't it be in the plugin setup options already
 if that was necessary? OR wouldn't the environment-setup* file contain 
the necessary declarations?

Any ideas how to avert it?

Thank you for your help! 		 	   		  
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