I have a few clients (new and old) that recently started seeing this Passenger error:
Missing the Rails 2.3.5 gem. Please `gem install -v=2.3.5 rails`, update your RAILS_GEM_VERSION setting in config/environment.rb for the Rails version you do have installed, or comment out RAILS_GEM_VERSION to use the latest version installed
This automatically started appearing on old clients because Dreamhost upgraded these servers. To fix this issue simply put the following at the top of your environment.rb file:
ENV["GEM_PATH"] = "/home/YOURUSER/.gems:/usr/lib/ruby/gems/1.8"
After I did that, I still saw the Passenger error for a new client I was working with.
I use POW locally to develop. Pow does work with Rails 2.3.+ but you have to add the config.ru file to your applications root directory. The config.ru file was also causing this Passenger error, so I just removed it from the web server and the error went away.










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