Thanks for the replies Stu and Kresimir

I followed the blog post. However I'm on OSX.

I had to install lua (http://devthought.com/2009/03/17/how-to-install-
lua-5-in-mac-os-x-leopard/)

But still got stuck on this error:

   dyld: Symbol not found: _environ
     Referenced from: /Users/neezer/.rvm/rubies/ruby-1.9.2-p0/lib/
libruby.1.9.1.dylib
     Expected in: flat namespace
   in /Users/neezer/.rvm/rubies/ruby-1.9.2-p0/lib/libruby.1.9.1.dylib

Looks like this is a known issue .... "Vim 7.2 does not support the
integration of Ruby 1.9.x on Snow Leopard."

 
http://webcache.googleusercontent.com/search?q=cache:JFHllGxJFp4J:stackoverflow.com/questions/6114380/trying-to-compile-vim-on-os-x+%22dyld

So I've given up compiling myself. However the suggestion to use
MacPorts is a good one, and it is working now. Although I'm not a
MacPorts fan, it's saved me lots of pain!  Would still love 7.3 and
1.9.2 to configure correctly on Snow Leopard, but doesn't seem like a
priority for the VIM team just now

thanks!