As Jeff mentioned, this is because of issue with environment variable setting. As in the original message ERROR: Default IPP 7.0 environment for Intel64 is not found.
While running build_intel64.bat , you should get message as below.
***Custom Intel IPP custom environment is found at C\Program Files\Intel\Composer XE 2011 SP1\ipp\bin\ippvars.bat
First you execute ippvars.bat in the ipp-samples/tools directory.