Indeed you are right, changing the name of my application has fixed 
this. Thank you!

Reason for me naming it Rails is because I have separate folders in my 
project development for different elements (e.g. Rails, Database Schema, 
Flex) and it always worked in Rails 2 fine for me this way.

I've used rails3b before but was mix and matching gem versions to try 
and get around this problem.

Now running Ruby 1.9.1-p378-rc2 with Rails 3.0.0.beta2!

Next stop, JRuby 1.5.0 dev snapshot...

Cheers!
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