With suggestion regardin BINUTILSPREFIX it makes cross-compiler fine (attached script).
Attached Blinky sample found somewhere at this forum is also compiled fine from commandline by:
ppcrossavr -Tembedded -Pavr -WpATMEGA328P -XPavr- Blinky.lpr
However when tried to compile from IDE, it returns error regarding avr-embedded-as:
Project checks, Hints: 1
Note: passing compiler option -Cp twice with different values
Compile Project, OS: embedded, CPU: avr, Target: Blinky: Exit code 1, Errors: 1
Blinky.lpr(7,1) Error: Assembler avr-embedded-as not found, switching to external assembling
This is strange...
Also "-Cp twice with different values". I have specifically set AVR5 group in project settings, but it is already set by defailt. Obvious conflict in parameters, or a bug.
Another problem I can see is that ATmega2560 (which I'm using regularly) is in AVR6 group, while this compiler compiles only code for models from AVR5 group. Would this compiler can be configured to compile code for any AVR MCUs group, or it is currently limited only to AVR5 group?