http://gcc.gnu.org/bugzilla/show_bug.cgi?id=49764
--- Comment #18 from _artem_ <artemeas at gmail dot com> 2011-07-26 19:34:13 UTC --- I've compiled gcc-avr from trunk and Arduino IDE stoped complaining about PROGMEM. I downgraded binutils-avr from 2.21 to 2.20 patched and now delay() function works as it should on arduino. Thank you guys. You can close that bug report. I'm hoping that gcc 4.7 will be released soon (so I don't have to compile it myself)
