Compilations with environment variables when compiling

[tucker . hermans]

I'm having quite a difficult time trying to solve what I thought was a
fairly simple problem and after looking through the code myself and
doing various searches, I must now post.

I am using a version of Emacs 22 for Mac OS X and when make is run via
the compile command (compilation-start)  the makefile is misread since
Emacs does not have the necessary bash environment variables.

The makefile includes the line:

        include $(SIMULATOR_HOME)/projects/default/controllers/
Makefile.include

Where SIMULATOR_HOME is set in bash to be /Applications/Simulator/

I tried compiling from both my terminal based emacs and XEmacs on the
same machine and both worked as the variable is supplied to both login
and non-login shells.  I can also compile from the shell inside
emacs.  I have the variable shell-file-name set to /bin/bash.

Any help would be much appreciated.  The frustration of this problem
is keeping me from doing my actual work.