I finally got the time to reinstall my broken VC++ 6.0 and update to SP4, so now I can build beta builds instead of relying on the binary kits. 
 
I followed the build instructions in nt/README, and opted to include PNG support.  I successfully built zlib and PNG, but when I went to build xemacs itself, I got the following error.  It looks like it is trying to treat zlib as an object instead of an include directory, but the nmake args look right to me.  Any ideas?
 
        nmake -nologo -f minitar.mak ZLIB="E:\My Documents\Development\xemacs-21
.2.35\jaux\zlib" NT="..\nt" LIB_SRC="..\lib-src"
        cl -Fo..\lib-src\minitar.obj -c ..\nt\minitar.c -I E:\My Documents\Devel
opment\xemacs-21.2.35\jaux\zlib
Microsoft (R) 32-bit C/C++ Optimizing Compiler Version 12.00.8804 for 80x86
Copyright (C) Microsoft Corp 1984-1998. All rights reserved.
 
Command line warning D4024 : unrecognized source file type 'Documents\Developmen
t\xemacs-21.2.35\jaux\zlib', object file assumed
Command line warning D4027 : source file 'Documents\Development\xemacs-21.2.35\j
aux\zlib' ignored
minitar.c
..\nt\minitar.c(18) : fatal error C1083: Cannot open include file: 'zlib.h': No
such file or directory
NMAKE : fatal error U1077: 'cl' : return code '0x2'
Stop.
NMAKE : fatal error U1077: '"E:\Program Files\Microsoft Visual Studio\VC98\bin\N
MAKE.EXE"' : return code '0x2'
Stop.
 
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