It looks like this is all related to the switch to the Official MinGW in 1.7.2 from the previous TwilightDragonMedia version. It looks like your have to update that if you go to 1.7.2, This should be put on the various Dependency page as their are now ERRONEOUS and PROMINENT documents still telling people to use TDM. The -static args do in fact need to be linker options and I got them to and I am able to do without them, but I now have a libboost_thread-mgw45-mt-1_44.dll dependency but it's available in the Ogre SDK and I'm tired so I'll figure out a static linking for that later.
I found this page helpful, its one guy going through an Ogre setup with MinGW from scratch and having and documenting about every hitch imaginablehttp://tb-nguyen.blogspot.com/2010/11/d ... al-12.html
And the whole upgrade to 1.7.2 was not in vane either, my Broken Debug Overlay is now working perfectly
Companions the creator seeks, not corpses, not herds and believers. Fellow creators, the creator seeks - those who write new values on new tablets. Companions the creator seeks, and fellow harvesters; for everything about him is ripe for the harvest.