To get it to work with MorphOS (note: I haven't tried it myself):
Copy bullet.library to libs:
Rename personal_agnus_blit.library to something else, or remove it altogether
or
Rename BLITLIBS = "personal_agnus_blit.library", "personal_cpu_blit.library", 1 to
BLITLIBS = "personal_agnus_blit.library", "personal_cpu_blit.library", 0
in Startup_1.set
Now it should work.