Lua compiles for AVR32 Linux with the vanilla makefile:
make all CC=avr32-linux-gcc AR="avr32-linux-ar rcu" RANLIB="avr32-linux-ranlib" \ MYCFLAGS="-DLUA_USE_POSIX -DLUA_USE_DLOPEN" MYLIBS="-ldl"
If you want more performance, please try out the LNUM patch at http://luaforge.net/frs/?group_id=214 . It allows integer operations to be optimized, which will boost Lua speed on non-FPU systems by 40-500%. Just apply the patch and compile normally.