The next thing we need is Bash, but bash needs ncurses, so we'll install it first. Ncurses replaces termcap as the way of handling text screens, but it can also provide backwards compatibility by supporting the termcap calls. In the interests of having a clean simple modern system, I think its best to disable the old termcap method. You might strike trouble later on if you are compiling an older application that uses termcap. But at least you will know what is using what. If you need to you can recompile ncurses with termcap support.
The commands I used are
./configure --prefix=/usr --with-install-prefix=/mnt/target --with-shared --disable-termcap
make
make install