Trouble with 'require' and 'include' in daemons

I am using the deamons gem to implement a set of daemons listening to
various things, and am launching the daemons from a Rails app. I am
having trouble with getting the require and include operations to work
in the daemon. I am assuming that I don’t have the correct
environment/load path set up in the daemon, but I am unclear what I
need. I know I can set ENV variables in the daemon launcher, and see
them in the daemon, but don’t know exactly which to set. I have set
the value of RAILS_ROOT in one ENV variable, that certainly helps, but
more is needed. Any suggestions?