It look like the problem is the library mm7 (I don't know what it is) for the ARM7 does not exist. My system is a linux Ubuntu 32 bits and I use the latest libnds with the latest devkitARM. Maybe it is me that does not do something properly.make -C arm7
make[1]: Entering directory `/home/louis/test/arm7'
template.c
arm-eabi-gcc -MMD -MP -MF /home/louis/test/arm7/build/template.d -g -Wall -O2 -mcpu=arm7tdmi -mtune=arm7tdmi -fomit-frame-pointer -ffast-math -mthumb-interwork -I/home/louis/test/arm7/include -I/home/louis/test/arm7/build -I/usr/local/devkitpro/libnds/include -I/home/louis/test/arm7/build -DARM7 -c /home/louis/test/arm7/source/template.c -o template.o
/home/louis/test/arm7/source/template.c:30:21: warning: maxmod7.h: No such file or directory
/home/louis/test/arm7/source/template.c: In function 'main':
/home/louis/test/arm7/source/template.c:62: warning: implicit declaration of function 'mmInstall'
linking test.arm7.elf
/usr/local/devkitpro/devkitARM/bin/../lib/gcc/arm-eabi/4.4.0/../../../../arm-eabi/bin/ld: cannot find -lmm7
collect2: ld returned 1 exit status
make[2]: *** [/home/louis/test/arm7/test.arm7.elf] Error 1
make[1]: *** [build] Error 2
make[1]: Leaving directory `/home/louis/test/arm7'
make: *** [arm7/test.elf] Error 2
Thank you!