It compiles successfully, I'll test it out later as I haven't got time this evening.
As you can see it currently has the wrong CPU, Mem and Video settings.
opendingux:/media/data/local/home # ./daphne.bin
--DAPHNE version 1.0.7
--Command line is: ./daphne.bin
--CPU : MIPS R5900 V2.0 300 MHz || Mem : 1984 megs
--OS : Linux 3.12 || Video : Playstation2
--OpenGL: Not Compiled In
--RGB2YUV Function: C
--Line Blending Function: C
--Audio Mixing Function: C
ERROR: Unknown game type specified :
Bad command line or initialization problem (see daphne_log.txt for details).
To run DAPHNE, you must specify which game to run and which laserdisc player you are using.
For example, try 'daphne lair noldp' to run Dragon's Lair in testing mode.