Similar problem; trying to compile 'make' an altcoin wallet application on ARM7 hardware, the gcc compiler bombs out with
/usr/share/gccxml-0.9/GCC/4.7/xmmintrin.h:32:3: error: #error "SSE instruction
set not enabled"
src/scrypt_mine.cpp: In function ‘void* scrypt_buffer_alloc()’:
src/scrypt_mine.cpp:66:19: error: ‘SCRYPT_BUFFER_SIZE’ was not declared in this scope
src/scrypt_mine.cpp: In function ‘void scrypt(const void*, size_t, uint32_t*, void*)’:
src/scrypt_mine.cpp:87:21: error: ‘scrypt_core’ was not declared in this scope
Makefile:1909: recipe for target 'build/scrypt_mine.o' failed
make: *** [build/scrypt_mine.o] Error 1
What I think is going on is that some implementations of scrypt got made to be so totally dependent on sse instructions on one brand of cpu that they won't compile for another.
Now the solution requires a better answer from the Litecoin people, as what I got to work is only applicable to bitcoin and other sha256d coins:
Ditch any scrypt based coins, as those are limited to a particular brand of cpu which does sse. Compile for sha256d based coins as those are more portable and wallets can work on ARM7 devices including raspberry pi.