A friend had this problem on Ubuntu. I think it turned out that his LD_LIBRARY_PATH or equivalent wasn't pointing to the ncurses library for some reason.

On Mon, 16 Oct 2006, Ajay Gupta wrote:

no terminal library found
checking for tgetent()... configure: error: NOT FOUND!
    You need to install a terminal library; for example ncurses.
    Or specify the name of the library with --with-tlib.



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