I created a new BSP using: yocto-bsp create LX800 i386 When prompted for a machine branch I selected option 4 (standard/default/base), which gives KBRANCH_LX800 = "standard/default/base/LX800" YOCTO_KERNEL_EXTERNAL_BRANCH_LX800 = "standard/default/base/LX800" in the linux-yocto_3.2.bbappend file of the created BSP meta-data. This causes a build-time failure within do_patch when the kernel is built. Bruce Ashfield has indicated that the above kernel branches should not include the /base element. If it is removed, do_patch runs to completion. This was all run under Denzil 7.0.1.
Fixed in poky/denzil with the series of commits starting with 96631f080b6a2ef181486cc2e2c74514dd45c1f4 *** This bug has been marked as a duplicate of bug 2693 ***
verified in commit id 8ebed883d45ee952bd89d2143e0b0ab8736049b0