Getting edge rails working on bluehost

Rails
1

Ive done the following, which has worked in the past when using gem
rails:

  1. alter database.yml to reflect database settings
    development:
    adapter: mysql
    database: xxx
    username: xxx
    password: xxx
    host: localhost

  2. change the ruby link in the first line of dispatch.cgi and
    dispatch.fcgi to reflect the server location:
    from #!c:\ruby\bin
    to #!/usr/bin/ruby

I test it and it fails. My gem rails app works fine with these changes.
gem rails app setup based on the bluehost tutorial:
http://helpdesk.bluehost.com/kb/index.php?x=&mod_id=2&root=41&id=232

I was under the impression that rails looks in vendor/rails first then
looks to the system gem install.

I checked out the dispatch.cgi file for relevant settings and found the
following. It appears to be pointing to the environment file for finding
the rails root ?

Im out of my depth here and would appreciate some direction with this
deployment.

dispatch.cgi----------------
#!/usr/bin/ruby

require File.dirname(FILE) + “/…/config/environment” unless
defined?(RAILS_ROOT)

If you’re using RubyGems and mod_ruby, this require should be changed

to an absolute path one, like:

“/usr/local/lib/ruby/gems/1.8/gems/rails-0.8.0/lib/dispatcher” –

otherwise performance is severely impaired
require “dispatcher”

ADDITIONAL_LOAD_PATHS.reverse.each { |dir| $:.unshift(dir) if
File.directory?(dir) } if defined?(Apache::RubyRun)
Dispatcher.dispatch

environment.rb---------------

require File.join(File.dirname(FILE), ‘boot’)

2

man this is frustrating, i cant find any information. It looks like it
should just work with vendor/rails by default…