No, the issue he's having now is that the script didn't exit when the error occurred during newlib's compilation. If you didn't actually FIX the issue with newlib's build, it was that you didn't have the makeinfo program installed. If you don't fix it, you'll likely never get that part working properly (you could also work around it by hacking up the Makefile, but that's a bit more work that I don't remember how to do off the top of my head right now).
I recommend removing the whole /home/nico/toolchains/dc directory and starting over (you should also clean out all of the intermediate directories that the dc-chain makefile made for building the tools), once you install the makeinfo program.
Most Linux distributions will have that in the "texinfo" package, apparently.
Since he's installing in his home directory, it is not likely to be a permissions issue.
In contradiction to the advice of almost every *nix user out there, I'm running my system as root (I'm the only user of this PC)
Even if you are the only user, you should never run as root for regular use. Not that me stating this will probably change your mind, but from a systems programmer's perspective, that is a REALLY
bad idea. One flaw in any of the programs you run on a daily basis (and believe me, I'm sure there are plenty of them), and your system would be toast. Hell, one mistyped command and your system would be toast.