Nothing rendered, but dispatch.rb returns the page

Browsing to my apps home page times out, and nothing is rendered.
However, running the dispatch.rb file via ssh does correctly return
the code for the home page.

The log file is updated when I hit dispatch, but not when I browse and
get the timeout. I’m upgrading to 2.0 on Dreamhost, and have the
1.99.0 gem installed in a custom dir. Everything runs fine locally
with the same configuration. There were no warnings when I was at
1.2.5. Also, I’ve tried both .rhtml and .html.erb as the file
extensions.

I think gems are set correctly -
export PATH="$HOME/bin:$PATH"
export GEM_HOME="$HOME/gems"
export RUBYLIB="$HOME/lib/ruby:$HOME/lib/site_ruby/1.8"
export GEM_PATH="$HOME/gems/gems:/usr/lib/ruby/gems/1.8"
export PATH="$HOME/gems/bin:$PATH"

Any ideas why nothing renders?

Thanks all