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I'm not 100% sure, but it looks to me like you've downloaded a pre-built Sage (based on the directory name sage-4.7-linux-64bit-ubuntu_10.04.1_lts-x86_64-Linux) and then tried to build it yourself (I don't know what command you tried that produced the install log, perhaps you ran make from the SAGE_ROOT?)

I would suggest you get the source code, read the section "Information" at the bottom of that page, especially:

Note: On Linux systems like Debian/Ubuntu, you may have to install the build essential package, the m4 macro processor, and gfortran:

and build your Sage-4.7 from source.