I changed it to:
Code:-LC:\cygwin\opt\m68k\lib\gcc\m68k-elf\4.1.1\m68000
Which gave the same "cannot find -lgcc" error. And yes, libgcc.a is at this directory.
Experimenting with quotes and slash direction all gave undefined reference errors
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It's been a long time since I used cygwin, but my understanding was that cygwin understood nothing about "C:\"-style drive letters. And yes, they should be / style path separators.
If it were me, I would type "cd /" in Cygwin to get to the root directory of your cygwin filesystem and figure out where I am. I guess the path would be "/opt/m68k/lib/gcc/m68k-elf/4.1.1/m68000" (without the quotes, naturally).