2.50 Build Error - ffmpeg related?

I was happily running the svn version of 2.50 on Ubuntu 9.10. However I was having trouble with segfaults when trying to use the footage from my Canon 7D. Someone told me that Ubuntu’s version of ffmpeg was suspect in this regard and to compile and build ffmpeg from svn myself - which I then did. However now when I do the scons for blender it ends with:

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scons: `/home/richard/src/blender250/build/linux2/lib/libbf_bullet.a' is up to date.
scons: `/home/richard/src/blender250/build/linux2/lib/libbf_videotex.a' is up to date.
Compiling ==> 'buildinfo.c'
Linking program ==> 'blender'
/usr/local/lib/libavformat.a(matroskadec.o): In function `matroska_decode_buffer':
/home/richard/src/ffmpeg/libavformat/matroskadec.c:940: undefined reference to `BZ2_bzDecompressInit'
/home/richard/src/ffmpeg/libavformat/matroskadec.c:949: undefined reference to `BZ2_bzDecompress'
/home/richard/src/ffmpeg/libavformat/matroskadec.c:952: undefined reference to `BZ2_bzDecompressEnd'
collect2: ld returned 1 exit status
scons: *** [/home/richard/src/blender250/build/linux2/bin/blender] Error 1
scons: building terminated because of errors.

I’m not sure if this is a problem with ffmpeg (which seemed to build fine) or with Blender or something else. I even tried rebuilding ffmpeg using the --disable-bz2 config switch to no avail.

I am unsure what I should be doing with the ffmpeg section of my user-config.py file. Here is what I have right now in the ffmpeg part of it:

# enable ffmpeg  support
WITH_BF_FFMPEG = True  # -DWITH_FFMPEG
BF_FFMPEG = '#extern/ffmpeg'
BF_FFMPEG_LIB = 'avformat avcodec swscale avutil avdevice'
# Uncomment the following two lines to use system's ffmpeg - **changed /usr to /usr/local**
#BF_FFMPEG = '/usr/local'
#BF_FFMPEG_LIB = 'avformat avcodec swscale avutil avdevice'
BF_FFMPEG_INC = '${BF_FFMPEG}/include'
BF_FFMPEG_LIBPATH='${BF_FFMPEG}/lib'

Any ideas? I suppose I could disable the matroska part of it (not sure if that would solve it), and while I don’t currently use that container, I figure with the WebM stuff, I should keep it in there.