It sounds like libxml2 is either not installed or the configure script can’t find it.
Looking at those instructions, wherever it says “–prefix=/usr/local/”, you’ll have to change that to something like “–prefix=$HOME/usr”.
Then, when you’re compiling libxslt, you give it the same directory: “–with-libxml-prefix=$HOME/usr”. Then it should be able to find libxml2, and it will compile correctly.
That’s my best guess…
Herecast: Location-aware services with Wi-Fi