On 04/09/2011, at 11:26, Tim Uckun <[email protected]> wrote:
> Ideally rails would process the Gemfile in the engine(s) and then the
> Gemfile in the parent app but it doesn't seem to be doing that.
> 

No, this is never going to be the case. You must specify your dependencies in 
your engine's gemspec file which will be loaded by Bundler because your 
application is treating your engine as if it were a gem. Or at least, it should 
be doing that.

If you've NOT specified your engine as a GEM DEPENDENCY of your application 
then things will not be loaded as normal.

If you'd like a better explanation why I can give you one over IM later this 
afternoon or I could write a blog post? :)

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