This has already been fixed in the sources.  Try this patch.
Thanks for the report!

--- make-3.79.1/job.c   Fri Jun 23 11:54:56 2000
+++ make/job.c  Sun Jul 30 14:26:43 2000
@@ -2421,7 +2421,7 @@
   char*  sh_chars;
   char** sh_cmds;
 #else  /* WINDOWS32 */
-  static char sh_chars[] = "#;\"*?[]&|<>(){}$`^";
+  static char sh_chars[] = "#;\"*?[]&|<>(){}$`^~";
   static char *sh_cmds[] = { "cd", "eval", "exec", "exit", "login",
                             "logout", "set", "umask", "wait", "while", "for",
                             "case", "if", ":", ".", "break", "continue",


-- 
-------------------------------------------------------------------------------
 Paul D. Smith <[EMAIL PROTECTED]>          Find some GNU make tips at:
 http://www.gnu.org                      http://www.paulandlesley.org/gmake/
 "Please remain calm...I may be mad, but I am a professional." --Mad Scientist

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