I have the same problem. The problem was even
larger: rpm -i name.src.rpm was doing nothing (seeable). The first error is solved - I had a bad .rpmmacros file in my home directory.
But when I removed it, rpm -i does the job - installs the src.rpm in the right place, but, won't do rpm -ba, it says:
name.spec: No such file or directory
Please, if you find out what rpm rpm settings and whwre should be done, write to me:
zovcin@bigfoot.com