Thanks for the idea. I had already updated everything. The problem
turned out to be that for some reason, my installation of ruby was
still at 1.8.6 instead of 1.8.7 that is supposed to be installed with
snow leopard. in my case it wasn't, not sure why, but the passenger
install script only requires the fastthread library in ruby versions
lower than 1.8.7. So I installed ruby 1.8.7 from source, and now
everything seems to be working.

thanks,
sean

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