This tunrs out to be a bug with m4 which manifests itself on Solaris.
See this post to the m4-bug list:

   http://lists.gnu.org/archive/html/bug-m4/2004-07/msg00029.html

        -Vance

On Mon, Jul 19, 2004 at 01:25:12PM -0400, Vance Shipley wrote:
}  
}  $ aclocal
}  configure.ac:2: /usr/local/bin/m4: ERROR: Reading inserted file: No such file or 
directory
}  autom4te: /usr/local/bin/m4 failed with exit status: 1


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