Not an Ubuntu guy, but I'll try. Do you have the -devel equivalent installed on your machine for the Boost libraries? I'm assuming you do since you have /usr/include/boost, but you also have /usr/lib/libboost_* there as well?
On Fedora the --with-boost=/usr is what you have to do for 0.7 (which is actually a bug, see
here). When you run the ./configure --with-boot=/usr, what does the config.status and config.log have to say when it tests a boost compile?