Hi,

Assuming you have bundler installed, try changing the line to run the 
bundle install command in your template to this:

inside app_name do
  run 'bundle install'
end

You need to make sure you are in the directory of your new rails app 
that has the Gemfile for the "bundle install" command to run correctly.

Hope this works.

~ Andrea

http://blog.madebydna.com
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