Damn!! Maybe the MacOS X 2.0.4 compiler doesn't have the SDL_Main fix.

OK last suggestion, find system.pp, inside that file find main(...) and rename it to SDL_Main. Then you would need to recompile the RTL and I'm not sure how to do that. If you manage to compile the RTL, you can then try the command line compile again but this time don't use the -XMSDL_main switch as it should not be needed now.

If I find an explanation of how to recompile the RTL I'll post it here.