It must be linked to Capistrano.
I did a fresh checkout on the same server. No issues at all.
When I run 'rake assets:precompile' from a capistrano deployed release, 
it takes 20 minutes. This is on the same server, using bundler.

@Jim I am also using Rails 3.1.1, so that can't be it.

Or it is caused by the directory structure used by capistrano. Or the 
way bundler is used in capistrano is causing a difference in a gem 
version.

I am not sure where to look anymore.

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