Does this happen with any of the 5.x branches? 5.2.10 or 5.3.0RCX?

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I was able to compile this with the configure line:
LDFLAGS="-L/usr/local/lib/ -liconv" ./configure 

Yeah, I know, it is a little bit ugly way to round it, but hey, it works :)

Because the problem seems to be, that in certain conditions (sorry, I don't know what those are, but I am having that ;)) it seems that "configure" is not putting "-liconv" to the test compilation line. Hence, it was possible to override with line we can see above.

But well, my system is 64bit (amd), OpenBSD 4.5 with GNU iconv 1.13.1 and php 5.3.0.

It is compiling now, but not finished yet, so I can't really be sure is that working. But the configure is now running fine.

This is happening to me with PHP Version 5.2.17.  Here is what my configure had:
'./configure' \
'--prefix=/usr/src/php-5.2.17' \
'--datadir=/usr/share/php5' \
'--mandir=/usr/share/man' \
'--bindir=/usr/bin' \
'--with-libdir=lib64' \
'--includedir=/usr/include' \
'--sysconfdir=/etc/php5/apache2' \
'--with-config-file-path=/etc/php5/apache2' \
'--with-config-file-scan-dir=/etc/php5/conf.d' \
'--with-exec-dir=/usr/lib64/php5/bin' \
'--enable-magic-quotes' \
'--enable-libxml' \
'--enable-session' \
'--with-mm' \
'--with-pcre-regex' \
'--enable-xml' \
'--enable-simplexml' \
'--enable-spl' \
'--enable-safe-mode' \
'--enable-sigchild' \
'--disable-debug' \
'--enable-inline-optimization' \
'--enable-zend-multibyte' \
'--with-mysql=/usr' \
'--with-mssql=/usr/src/freetds-0.82' \
'--with-gd=shared' \
'--with-apxs2=/usr/sbin/apxs2' \
'--disable-all' \
'--disable-cli' \
'--with-pear=/usr/share/php5/PEAR' \
'--enable-bcmath=shared' \
'--enable-calendar=shared' \
'--enable-ctype=shared' \
'--enable-dbase=shared' \
'--enable-dom=shared' \
'--enable-exif=shared' \
'--enable-filepro=shared' \
'--enable-ftp=shared' \
'--enable-mbstring=shared' \
'--enable-mbregex' \
'--enable-pcntl=shared' \
'--enable-posix=shared' \
'--enable-shmop=shared' \
'--enable-ucd-snmp-hack' \
'--enable-soap=shared' \
'--enable-sockets=shared' \
'--enable-sysvmsg=shared' \
'--enable-sysvsem=shared' \
'--enable-sysvshm=shared' \
'--enable-tokenizer=shared' \
'--enable-wddx=shared' \
'--with-zlib=shared' \
'--with-bz2=shared' \
'--with-curl=shared' \
'--with-gd=shared' \
'--enable-gd-jis-conv' \
'--enable-gd-native-ttf' \
'--with-xpm-dir=/usr/X11' \
'--with-zlib-dir=/usr' \
'--with-gettext=shared' \
'--with-gmp=shared' \
'--with-iconv=shared,/usr/local' \
'--with-kerberos' \
'--with-config-file-scan-dir=/etc/php5/conf.d'

And /usr/local/bin contains:
MYSERVER:/usr/local/bin # ls
bsqldb    freebcp          neon-config    svnlook     wrjpgcom
cjpeg     iconv            osql           svnserve    xml2-config
...

I tried with the extra line: 
LDFLAGS="-L/usr/local/lib/ -liconv" ./configure ...

But I still couldn't get configure to complete without "Please reinstall the iconv library."  I finally gave up and replaced the function that used iconv to simply return the input string instead of converting it.  I suppose that can lead to other problems, so I'll look back here for guidance.

Sorry, we don't support 5.2.x anymore. Re-open if you can reproduce in 5.3.x or 
5.4.x.