Rails with Apache - application failed to start

I followed the instructions in the article
to make rails work with apache:

Install Apache2, latest stable version
Install the latest Ruby Installer for Windows
Install the latest Ruby For Apache

In httpd.conf I have:

FastCgiConfig -maxClassProcesses 1 -maxProcesses 1 -minProcesses 1
-processSlack 1
-initial-env PATH=e:/ruby/bin;d:/windows/system32;d:/windows
-initial-env RUBYOPT=rubygems

When I browse it shows ok, but when I click
http://localhost/rails_info/properties or http/localhost/recipes/ I get:

Application error
Rails application failed to start properly.

I have Windows XPSP2, Apache 2.0.55, Oracle.
WebRick shows ok on port 3000.

Did anyone had this problem? I tried also unsuccessfully to install
rails on IIS.

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