You are not supposed to compile this by hand, but by using GNU autotools. There is a script called configure in the main 'hello-2.7' directory, which when run, generates a config.h file. Compilation is to be done through the make command then. If you want to just set up a basic programming environment for beginners, then it would be better to start off with small standalone C programs.
As for the documentation, consider me in. I'll help as much as I can.

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