I'm not sure you should be using GEM_HOME at all. I've gotten bundler
working without changing that constant. It seems to me that the
inclusion of bundler gems into the environment is accomplished by a
different mechanism, as shown by this line that you should have in
preinitializer.rb:
require File.expand_path('../../.bundle/environment', __FILE__)

How does your setup compare to the bundler-Rails 2.3.x guide
http://gist.github.com/302406 ?

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