[syslog-ng]Syslog-ng will not configure properly on vanilla Red Hat

[Keg]

syslog-ng needs the libol library, which I compiled and installed to 
it's default location, /usr/local/lib.

When configuring syslog-ng I get this error:
<snip>
checking for strptime... yes
checking for TCP wrapper library... -lwrap
checking whether to enable Sun STREAMS support... no
checking whether to enable Sun door support... no
checking whether to enable TCP wrapper support... no
checking whether to enable spoof_source support... no
checking libol version >= 0.3.13... no
configure: error: Required libol version not found

Here is the library:
syslog:/usr/local/lib #ls -la
total 124
drwxr-xr-x    2 root     root         4096 May 13 06:45 .
drwxr-xr-x   23 root     root         4096 Jan 10 10:55 ..
-rw-r--r--    1 root     root        51408 May 13 06:45 libol.a
-rwxr-xr-x    1 root     root          698 May 13 06:45 libol.la
lrwxrwxrwx    1 root     root           14 May 13 06:45 libol.so -> 
libol.so.0.0.0
lrwxrwxrwx    1 root     root           14 May 13 06:45 libol.so.0 -> 
libol.so.0.0.0
-rwxr-xr-x    1 root     root        50799 May 13 06:45 libol.so.0.0.0


I added /usr/local/lib to /etc/ld.so.conf and ran ldconfig. (even 
rebooted as well) This did not work.
I added /usr/local/lib to LD_LIBRARY_PATH, this did not work.
I tried configuring with --with-libol=/usr/local and got same error.
I tried configuring with --with-libol=/usr/local/lib and got same error.
I tried configuring with --with-libol=/usr/local, however, this time I 
get this error:

checking for TCP wrapper library... -lwrap
checking whether to enable Sun STREAMS support... no
checking whether to enable Sun door support... no
checking whether to enable TCP wrapper support... no
checking whether to enable spoof_source support... no
checking libol version >= 0.3.13... configure: error: libol-config not 
found in the specified location

libol-config is in /usr/local/bin:
syslog:/usr/local/src/Syslog-Ng/syslog-ng-1.6.3 #ls -l /usr/local/bin/
-rwxr-xr-x    1 root     root         1298 May 13 06:45 libol-config

I have followed every doc as instructed. This is a vanilla RH 9 system 
with all updates.

Thx for any help.
cc