i was able to compile the source in windows
my makefile:

# Project: Project1
# Makefile created by Dev-C++ 4.9.9.2

CPP = C:\Dev-Cpp\Bin\gcc.exe -D__DEBUG__
CC = C:\Dev-Cpp\Bin\gcc.exe -D__DEBUG__
WINDRES = C:\Dev-Cpp\Bin\windres.exe
RES = Project1_private.res
OBJ = http.o md5.o powder.o update.o $(RES)
LINKOBJ = http.o md5.o powder.o update.o $(RES)
LIBS = -L"E:/D/Dev-Cpp/lib" -lmingw32 -lws2_32 ../lib/lib/bzip2.lib ../lib/lib/libbz2.a ../lib/lib/libbz2.dll.a -mwindows -lSDLmain -lSDL -g3
INCS = -I"E:/D/Dev-Cpp/include"
CXXINCS = -I"E:/D/Dev-Cpp/lib/gcc/mingw32/3.4.2/include" -I"E:/D/Dev-Cpp/include/c++/3.4.2/backward" -I"E:/D/Dev-Cpp/include/c++/3.4.2/mingw32" -I"E:/D/Dev-Cpp/include/c++/3.4.2" -I"E:/D/Dev-Cpp/include"
BIN = Project1.exe
CXXFLAGS = $(CXXINCS) -g3 -gstabs -g3
CFLAGS = $(INCS) -g3 -gstabs -g3
RM = rm -f

.PHONY: all all-before all-after clean clean-custom

all: all-before Project1.exe all-after


clean: clean-custom
${RM} $(OBJ) $(BIN)

$(BIN): $(OBJ)
$(CPP) $(LINKOBJ) -o "Project1.exe" $(LIBS)

http.o: http.c
$(CPP) -c http.c -o http.o $(CXXFLAGS)

md5.o: md5.c
$(CPP) -c md5.c -o md5.o $(CXXFLAGS)

powder.o: powder.c
$(CPP) -c powder.c -o powder.o $(CXXFLAGS)

update.o: update.c
$(CPP) -c update.c -o update.o $(CXXFLAGS)

Project1_private.res: Project1_private.rc powder-res.rc
$(WINDRES) -i Project1_private.rc --input-format=rc -o Project1_private.res -O coff


actual stuff executed:

C:\Dev-Cpp\Bin\make.exe -f "C:\Dev-Cpp\powder-33.2-src\Makefile.win" all
C:\Dev-Cpp\Bin\gcc.exe -D__DEBUG__ -c http.c -o http.o -I"E:/D/Dev-Cpp/lib/gcc/mingw32/3.4.2/include" -I"E:/D/Dev-Cpp/include/c++/3.4.2/backward" -I"E:/D/Dev-Cpp/include/c++/3.4.2/mingw32" -I"E:/D/Dev-Cpp/include/c++/3.4.2" -I"E:/D/Dev-Cpp/include" -g3 -gstabs -g3

C:\Dev-Cpp\Bin\gcc.exe -D__DEBUG__ -c md5.c -o md5.o -I"E:/D/Dev-Cpp/lib/gcc/mingw32/3.4.2/include" -I"E:/D/Dev-Cpp/include/c++/3.4.2/backward" -I"E:/D/Dev-Cpp/include/c++/3.4.2/mingw32" -I"E:/D/Dev-Cpp/include/c++/3.4.2" -I"E:/D/Dev-Cpp/include" -g3 -gstabs -g3

C:\Dev-Cpp\Bin\gcc.exe -D__DEBUG__ -c powder.c -o powder.o -I"E:/D/Dev-Cpp/lib/gcc/mingw32/3.4.2/include" -I"E:/D/Dev-Cpp/include/c++/3.4.2/backward" -I"E:/D/Dev-Cpp/include/c++/3.4.2/mingw32" -I"E:/D/Dev-Cpp/include/c++/3.4.2" -I"E:/D/Dev-Cpp/include" -g3 -gstabs -g3

C:\Dev-Cpp\Bin\gcc.exe -D__DEBUG__ -c update.c -o update.o -I"E:/D/Dev-Cpp/lib/gcc/mingw32/3.4.2/include" -I"E:/D/Dev-Cpp/include/c++/3.4.2/backward" -I"E:/D/Dev-Cpp/include/c++/3.4.2/mingw32" -I"E:/D/Dev-Cpp/include/c++/3.4.2" -I"E:/D/Dev-Cpp/include" -g3 -gstabs -g3

C:\Dev-Cpp\Bin\windres.exe -i Project1_private.rc --input-format=rc -o Project1_private.res -O coff

C:\Dev-Cpp\Bin\gcc.exe -D__DEBUG__ http.o md5.o powder.o update.o Project1_private.res -o "Project1.exe" -L"E:/D/Dev-Cpp/lib" -lmingw32 -lws2_32 ../lib/lib/bzip2.lib ../lib/lib/libbz2.a ../lib/lib/libbz2.dll.a -mwindows -lSDLmain -lSDL -g3

^Ignore the quote it wont select the whole post? Bug?

Download the source and extract to a known directory
Then in the terminal write sudo apt-get libbz2-dev
Then in the terminal write sudo apt-get SDL1.4-dev
Open your terminal and change directory to where the source is located 'cd [path]'
Then type 'MAKE'
Then "./powder"