Well I found this odd..
If you’re rebuilding an RPM on RHEL4 (notably openssh*) from the SRPM and you don’t specifically state the target some odd standard vars are defined. In my case sysconfdir changed from /etc to /usr/etc.
Specifically using –target=x86_64 fixes the problem. I find it odd since if you’re building a SRPM on a x86_64 machine you’d generally expect it to default to an x86_64 target. Seems not! 🙂