I strongly recommend using the DJGPP compiler, which is available by ftp.
Here is a recent message (04 Feb 1998) from David Pease, explaining how to get and use the DJGPP compiler to build Tierra.
Here is older information on how to get and set up the compiler.
Here is a compile.bat file that I use to compile Tierra with DJGPP. This file assumes that it is run from within the tierra source code directory, and that this directory contains the genebank sub-directories gb0, gb1, gb2, gb3 and gb8, with the relevant genome (*.tie) files. You may have to modify the compile.bat file somewhat according to the configuration of your system.
But a user (email@example.com) recently sent me a Makefile.djg file which you might want to use instead. I haven't tried it. The version on-line now, was corrupted by the mailer. I hope to have a clean version soon. Here is his document on how to use the makefile