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The 1.2.9 version of libpng has removed several deprecated functions, some of which CUPS uses. I have tested this with the 1.1.23 (the one I normally use) and the 1.2rc2 versions of CUPS.
Here is a link that might be of use:
Attached is the compile log from my installation of Source Mage, which includes a copy of the compile output up and the config.log.