Das steht in der GCC Referenz Lib
In order for these functions to work as intended, compiler optimizations must be enabled, and the delay time must be an expression that is a known constant at compile-time. If these requirements are not met, the resulting delay will be much longer (and basically unpredictable), and applications that otherwise do not use floating-point calculations will experience severe code bloat by the floating-point library routines linked into the application.
Wie hast du denn die Fuses deines Mega32 eingestellt?