Configure doesn't call its own subprogram properly

--- ATLAS/configure	2009-02-18 13:47:35.000000000 -0500
+++ ATLAS-new/configure	2009-03-15 19:34:04.000000000 -0400
@@ -181,13 +181,7 @@
 # 
 #     If flag have internal spaces, surround it with ''
 #
-      flag=`echo "$arg" | sed -e "s/ //"`
-      if (test "$flag" != "$arg")
-      then
-         pass="$pass '`echo "$arg"`'"
-      else
-         pass="$pass $arg"
-      fi
+     pass="$pass $arg"
    fi
 done
 OSGUESS=`uname`