The problem comes from can_cc() using the 'cc' value in Config. Thus, the bug is in Module::Install - in inc/Module/Install/Can.pm. It needs to accommodate ExtUtils::FakeConfig, replacing "use Config;" with:
eval { require Config_m; }; # ExtUtils::FakeConfig (+ ActivePerl)
if ($@) {
eval { require Config; }; # Everyone else
}
Then on your end, you'd need to install and configure ExtUtils::FakeConfig to have the correct 'cc' entry.
Or you could just edit your Config.pm, and change the 'cc' entry to something that works.
Remember: There's always one more bug.