At last! I found one more edit in the pgdriver makefile:
NSHOME=/usr/local/aolserver
It had been set to /usr/local/aolserver/aolserver. That was line 59 in the version I was working from. The line numbers in my copy (part of the complete tar identified as "Mat's AOLServer distribution" in the docs) were slightly different from yours, but yours got me close enough to finish up.
Oh boy, oh boy! I have an OACS running after a year or more of reading about it.
Van
