development env:
 Ubuntu 9.04
 ruby -v
   ruby 1.8.7 (2008-08-11 patchlevel 72) [i486-linux]
 rails -v
   Rails 3.0.0
 gem -v
  1.3.7

Here what I did:
 rails new testpaperclip -d mysql
 cd testpaperclip
 rake db:create
 rails g scaffold user name:string address:string
 rake db:migrate
==  CreateUsers: migrating
====================================================
-- create_table(:users)
   -> 0.0400s
==  CreateUsers: migrated (0.0400s)
===========================================
 rails plugin install http://github.com/thoughtbot/paperclip.git
   walk 13318e61a4953dfc3d2b76e0491b1651f26062fe
   From http://github.com/thoughtbot/paperclip
   * branch            HEAD       -> FETCH_HEAD
 rails generate paperclip user photo
      create  db/migrate/20101102092748_add_attachment_photo_to_user.rb
 rake db:migrate

 added this line on  models/users.rb
   has_attached_file :photo

 modify the first on views/users/_form.html.erb
  <%= form_for(@user) do |f| %>
to
 <%= form_for(@user), :html => { :multipart => true }  do |f| %>

running rails s

on my browser
 http://localhost:3000/users/

produce error

  Errno::ENOENT

/usr/lib/ruby/1.8/webrick/server.rb:162:in `start'
/usr/lib/ruby/1.8/webrick/server.rb:162:in `start_thread'
/usr/lib/ruby/1.8/webrick/server.rb:95:in `start'
/usr/lib/ruby/1.8/webrick/server.rb:92:in `each'
/usr/lib/ruby/1.8/webrick/server.rb:92:in `start'
/usr/lib/ruby/1.8/webrick/server.rb:23:in `start'
/usr/lib/ruby/1.8/webrick/server.rb:82:in `start'
rack (1.2.1) lib/rack/handler/webrick.rb:13:in `run'
rack (1.2.1) lib/rack/server.rb:213:in `start'
railties (3.0.0) lib/rails/commands/server.rb:65:in `start'
railties (3.0.0) lib/rails/commands.rb:30
railties (3.0.0) lib/rails/commands.rb:27:in `tap'
railties (3.0.0) lib/rails/commands.rb:27
script/rails:6:in `require'
script/rails:6

Any help would be appreciated!
Thanks,
Wally

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