brew install emacs error - emacs

Question

Having issues with installing emacs through homebrew. Any ideas are appreciated - here's what I'm getting:
==> Downloading http://ftpmirror.gnu.org/emacs/emacs-24.2.tar.bz2
Already downloaded: /Library/Caches/Homebrew/emacs-24.2.tar.bz2
==> Downloading patches
######################################################################## 100.0%
==> Patching
patching file lisp/term/ns-win.el
Hunk #1 succeeded at 931 with fuzz 1 (offset -332 lines).
patching file src/nsfns.m
Hunk #1 succeeded at 2681 (offset 92 lines).
Hunk #2 succeeded at 2794 (offset 90 lines).
patching file src/nsterm.h
Hunk #1 succeeded at 116 (offset 21 lines).
patching file src/nsterm.m
Hunk #1 succeeded at 797 (offset 111 lines).
Hunk #2 succeeded at 1281 (offset 143 lines).
Hunk #3 succeeded at 1337 (offset 127 lines).
Hunk #4 succeeded at 6088 with fuzz 2 (offset 466 lines).
Hunk #5 succeeded at 6196 (offset 463 lines).
==> ./configure --prefix=/usr/local/Cellar/emacs/24.2 --without-dbus --enable-lo
checking whether make sets $(MAKE)... ./configure: /usr/local/Library/ENV/4.3/sed: /bin/bash^M: bad interpreter: No such file or directory
no
configure: error: cannot run /bin/sh build-aux/config.sub
./configure: /usr/local/Library/ENV/4.3/sed: /bin/bash^M: bad interpreter: No such file or directory
./configure: /usr/local/Library/ENV/4.3/sed: /bin/bash^M: bad interpreter: No such file or directory
READ THIS: https://github.com/mxcl/homebrew/wiki/troubleshooting
Here's the output of brew doctor:
Warning: /usr/bin occurs before /usr/local/bin
This means that system-provided programs will be used instead of those
provided by Homebrew. The following tools exist at both paths:
aclocal
autoconf
autoheader
autom4te
automake
autoreconf
autoscan
autoupdate
clusterdb
createdb
createlang
createuser
dropdb
droplang
dropuser
ecpg
ifnames
pg_config
pg_dump
pg_dumpall
pg_restore
pg_upgrade
psql
reindexdb
vacuumdb
Consider amending your PATH so that /usr/local/bin
occurs before /usr/bin in your PATH.
Warning: Your Homebrew is outdated
You haven't updated for at least 24 hours, this is a long time in brewland!