Rails Phusion Passenger error after updates

I updated to rails 3.2.17 from 3.2.1. When I run bundle update and bundle install, everything passes with no errors or warnings. Then I restart my server, and when I load my site, I get the PASSENGER: WEB APPLICATION COULD NOT BE STARTED page. Below is a copy of everything listed on that page. Any ideas what I might need to change or check to get things running?

It looks like Bundler could not find a gem. Maybe you didn't install all the gems that this application needs. To install your gems, please run:

bundle install
If that didn't work, then the problem is probably caused by your application being run under a different environment than it's supposed to. Please check the following:

Is this app supposed to be run as the root user?
Is this app being run on the correct Ruby interpreter? Below you will see which Ruby interpreter Phusion Passenger attempted to use.
-------- The exception is as follows: -------

Could not find rake-10.2.1 in any of the sources (Bundler::GemNotFound)
  /var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/spec_set.rb:92:in `block in materialize'
  /var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/spec_set.rb:85:in `map!'
  /var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/spec_set.rb:85:in `materialize'
  /var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/definition.rb:133:in `specs'
  /var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/definition.rb:178:in `specs_for'
  /var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/definition.rb:167:in `requested_specs'
  /var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/environment.rb:18:in `requested_specs'
  /var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/runtime.rb:13:in `setup'
  /var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler.rb:119:in `setup'
  /var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/setup.rb:17:in `<top (required)>'
  /usr/lib/ruby/1.9.1/rubygems/custom_require.rb:59:in `require'
  /usr/lib/ruby/1.9.1/rubygems/custom_require.rb:59:in `rescue in require'
  /usr/lib/ruby/1.9.1/rubygems/custom_require.rb:35:in `require'
  /var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/loader_shared_helpers.rb:245:in `block in run_load_path_setup_code'
  /var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/loader_shared_helpers.rb:348:in `running_bundler'
  /var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/loader_shared_helpers.rb:243:in `run_load_path_setup_code'
  /var/lib/gems/1.9.1/gems/passenger-4.0.37/helper-scripts/rack-preloader.rb:100:in `preload_app'
  /var/lib/gems/1.9.1/gems/passenger-4.0.37/helper-scripts/rack-preloader.rb:158:in `<module:App>'
  /var/lib/gems/1.9.1/gems/passenger-4.0.37/helper-scripts/rack-preloader.rb:29:in `<module:PhusionPassenger>'
  /var/lib/gems/1.9.1/gems/passenger-4.0.37/helper-scripts/rack-preloader.rb:28:in `<main>'
Application root
/srv/engdb
Environment (value of RAILS_ENV, RACK_ENV, WSGI_ENV and PASSENGER_ENV)
development
Ruby interpreter command
/usr/bin/ruby1.9.1
User and groups
uid=0(root) gid=0(root) groups=0(root)
Environment variables
APACHE_PID_FILE = /var/run/apache2.pid
SHELL = /bin/bash
APACHE_RUN_USER = www-data
PASSENGER_DEBUG_DIR = /tmp/passenger.spawn-debug.XXXX7bmK0b
USER = root
APACHE_LOG_DIR = /var/log/apache2
PATH = /usr/local/bin:/usr/bin:/bin
PWD = /srv/engdb
APACHE_RUN_GROUP = www-data
LANG = C
SHLVL = 0
HOME = /root
LOGNAME = root
APACHE_LOCK_DIR = /var/lock/apache2
APACHE_RUN_DIR = /var/run/apache2
IN_PASSENGER = 1
PYTHONUNBUFFERED = 1
NODE_PATH = /var/lib/gems/1.9.1/gems/passenger-4.0.37/node_lib
RAILS_ENV = development
RACK_ENV = development
WSGI_ENV = development
NODE_ENV = development
PASSENGER_APP_ENV = development
SERVER_PROTOCOL = HTTP/1.1
SERVER_SOFTWARE = Apache/2.2.22 (Ubuntu)
DOCUMENT_ROOT = /srv/engdb/public/
SERVER_ADMIN = [no address given]
QUERY_STRING = 
SERVER_NAME = engdatabase
REMOTE_PORT = 53900
REMOTE_ADDR = 192.168.201.14
SERVER_PORT = 80
REQUEST_METHOD = GET
SERVER_ADDR = 192.168.201.89
REQUEST_URI = /
GEM_PATH = /var/lib/gems/1.9.1:/root/.gem/ruby/1.9.1
GEM_HOME = /var/lib/gems/1.9.1
Ulimits
Unknown
System memory usage
             total       used       free     shared    buffers     cached
Mem:          2001       1674        327          0        198        704
-/+ buffers/cache:        772       1229
Swap:         2044          7       2037
General Ruby interpreter information
RUBY_VERSION = 1.9.3
RUBY_PLATFORM = x86_64-linux
RUBY_ENGINE = ruby
RubyGems version = 1.8.11
Ruby configuration (RbConfig::CONFIG)
DESTDIR = 
MAJOR = 1
MINOR = 9
TEENY = 1
PATCHLEVEL = 0
INSTALL = /usr/bin/install -c
EXEEXT = 
prefix = /usr
ruby_install_name = ruby1.9.1
RUBY_INSTALL_NAME = ruby1.9.1
RUBY_SO_NAME = ruby-1.9.1
exec = exec
ruby_pc = ruby-1.9.pc
PACKAGE = ruby
BUILTIN_TRANSSRCS =  newline.c
USE_RUBYGEMS = YES
MANTYPE = doc
NROFF = /usr/bin/nroff
vendorhdrdir = /usr/include/ruby-1.9.1/vendor_ruby
sitehdrdir = /usr/include/ruby-1.9.1/site_ruby
rubyhdrdir = /usr/include/ruby-1.9.1
UNIVERSAL_INTS = 
UNIVERSAL_ARCHNAMES = 
configure_args =  '--build=x86_64-linux-gnu' '--prefix=/usr' '--includedir=/usr/include' '--mandir=/usr/share/man' '--infodir=/usr/share/info' '--sysconfdir=/etc' '--localstatedir=/var' '--libexecdir=/usr/lib/ruby1.9.1' '--srcdir=.' '--disable-maintainer-mode' '--disable-dependency-tracking' '--disable-silent-rules' '--enable-pthread' '--enable-shared' '--disable-rpath' '--disable-install-doc' '--with-vendordir=/usr/lib/ruby/vendor_ruby' '--with-sitedir=/usr/local/lib/site_ruby' '--program-suffix=1.9.1' '--with-soname=ruby-1.9.1' '--with-baseruby=/usr/bin/ruby1.8' '--enable-ipv6' '--with-dbm-type=gdbm_compat' '--with-tklib=tk8.4' '--with-tcllib=tcl8.4' '--with-tcl-include=/usr/include/tcl8.4' '--with-bundled-sha1' '--with-bundled-md5' '--with-bundled-rmd160' 'build_alias=x86_64-linux-gnu' 'CFLAGS=-fno-strict-aliasing -g -g -O2' 'LDFLAGS=' 'CPPFLAGS=' 'CXXFLAGS=-fno-strict-aliasing -g'
vendordir = /usr/lib/ruby/vendor_ruby
sitedir = /usr/local/lib/site_ruby
ruby_version = 1.9.1
sitearch = x86_64-linux
arch = x86_64-linux
RI_BASE_NAME = ri
ridir = /usr/share/ri
rubylibprefix = /usr/lib/ruby
MAKEFILES = Makefile
THREAD_MODEL = pthread
SYMBOL_PREFIX = 
EXPORT_PREFIX = 
COMMON_HEADERS = 
COMMON_MACROS = 
COMMON_LIBS = 
MAINLIBS = 
ENABLE_SHARED = yes
DLDLIBS =  -lc
SOLIBS = -lpthread -lrt -ldl -lcrypt -lm 
LIBRUBYARG_SHARED = -lruby-1.9.1
LIBRUBYARG_STATIC = -lruby-1.9.1-static
LIBRUBYARG = -lruby-1.9.1
LIBRUBY = libruby-1.9.1.so.1.9.1
LIBRUBY_ALIASES = libruby-1.9.1.so.1.9 libruby-1.9.1.so
LIBRUBY_SO = libruby-1.9.1.so.1.9.1
LIBRUBY_A = libruby-1.9.1-static.a
RUBYW_INSTALL_NAME = 
rubyw_install_name = 
LIBRUBY_DLDFLAGS = -Wl,-soname,libruby-1.9.1.so.1.9
LIBRUBY_LDSHARED = gcc -shared
warnflags = -Wextra -Wno-unused-parameter -Wno-parentheses -Wno-long-long -Wno-missing-field-initializers -Werror=pointer-arith -Werror=write-strings -Werror=declaration-after-statement -Werror=implicit-function-declaration
debugflags = -ggdb
optflags = -O3
cxxflags =  -O3 -ggdb -Wextra -Wno-unused-parameter -Wno-parentheses -Wno-long-long -Wno-missing-field-initializers -Werror=pointer-arith -Werror=write-strings -Werror=declaration-after-statement -Werror=implicit-function-declaration
cflags =  -O3 -ggdb -Wextra -Wno-unused-parameter -Wno-parentheses -Wno-long-long -Wno-missing-field-initializers -Werror=pointer-arith -Werror=write-strings -Werror=declaration-after-statement -Werror=implicit-function-declaration
cppflags = 
NULLCMD = :
INSTALLDOC = nodoc
CAPITARGET = nodoc
RDOCTARGET = nodoc
EXECUTABLE_EXTS = 
ARCHFILE = 
LIBRUBY_RELATIVE = no
EXTOUT = .ext
PREP = miniruby
TEST_RUNNABLE = yes
setup = Setup
EXTSTATIC = 
STRIP = strip -S -x
TRY_LINK = 
LIBPATHENV = LD_LIBRARY_PATH
RPATHFLAG = 
LIBPATHFLAG =  -L%s
LINK_SO = 
LIBEXT = a
DLEXT2 = 
DLEXT = so
LDSHAREDXX = g++ -shared
LDSHARED = gcc -shared
CCDLFLAGS = -fPIC
STATIC = 
ARCH_FLAG = 
DLDFLAGS = 
ALLOCA = 
WERRORFLAG = -Werror
CHDIR = cd -P
RMALL = rm -fr
RMDIRS = rmdir --ignore-fail-on-non-empty -p
RMDIR = rmdir --ignore-fail-on-non-empty
CP = cp
RM = rm -f
PKG_CONFIG = 
DOXYGEN = 
DOT = 
MAKEDIRS = /bin/mkdir -p
MKDIR_P = /bin/mkdir -p
INSTALL_DATA = /usr/bin/install -c -m 644
INSTALL_SCRIPT = /usr/bin/install -c
INSTALL_PROGRAM = /usr/bin/install -c
SET_MAKE = 
LN_S = ln -s
NM = nm
DLLWRAP = 
WINDRES = 
OBJCOPY = objcopy
OBJDUMP = objdump
ASFLAGS = 
AS = as
AR = ar
RANLIB = ranlib
try_header = 
COUTFLAG = -o 
OUTFLAG = -o 
CPPOUTFILE = -o conftest.i
GNU_LD = yes
GCC = yes
EGREP = /bin/grep -E
GREP = /bin/grep
CPP = gcc -E
CXXFLAGS = -fno-strict-aliasing -g
CXX = g++
OBJEXT = o
CPPFLAGS =   
LDFLAGS = -L.  -rdynamic -Wl,-export-dynamic
CFLAGS = -fno-strict-aliasing -g -g -O2 -fPIC
CC = gcc
target_os = linux
target_vendor = pc
target_cpu = x86_64
target = x86_64-pc-linux-gnu
host_os = linux-gnu
host_vendor = pc
host_cpu = x86_64
host = x86_64-pc-linux-gnu
RUBYW_BASE_NAME = rubyw
RUBY_BASE_NAME = ruby
build_os = linux-gnu
build_vendor = pc
build_cpu = x86_64
build = x86_64-pc-linux-gnu
RUBY_RELEASE_DATE = 2011-10-30
RUBY_PROGRAM_VERSION = 1.9.3
BASERUBY = /usr/bin/ruby1.8
target_alias = 
host_alias = 
build_alias = x86_64-linux-gnu
LIBS = -lpthread -lrt -ldl -lcrypt -lm 
ECHO_T = 
ECHO_N = -n
ECHO_C = 
DEFS = 
mandir = /usr/share/man
localedir = /usr/share/locale
libdir = /usr/lib
psdir = /usr/share/doc/ruby
pdfdir = /usr/share/doc/ruby
dvidir = /usr/share/doc/ruby
htmldir = /usr/share/doc/ruby
infodir = /usr/share/info
docdir = /usr/share/doc/ruby
oldincludedir = /usr/include
includedir = /usr/include
localstatedir = /var
sharedstatedir = /usr/com
sysconfdir = /etc
datadir = /usr/share
datarootdir = /usr/share
libexecdir = /usr/lib/ruby1.9.1
sbindir = /usr/sbin
bindir = /usr/bin
program_transform_name = s&$&1.9.1&;s&^&&
exec_prefix = /usr
PACKAGE_URL = 
PACKAGE_BUGREPORT = 
PACKAGE_STRING = 
PACKAGE_VERSION = 
PACKAGE_TARNAME = 
PACKAGE_NAME = 
PATH_SEPARATOR = :
SHELL = /bin/bash
rubylibdir = /usr/lib/ruby/1.9.1
archdir = /usr/lib/ruby/1.9.1/x86_64-linux
sitelibdir = /usr/local/lib/site_ruby/1.9.1
sitearchdir = /usr/local/lib/site_ruby/1.9.1/x86_64-linux
vendorlibdir = /usr/lib/ruby/vendor_ruby/1.9.1
vendorarchdir = /usr/lib/ruby/vendor_ruby/1.9.1/x86_64-linux
topdir = /usr/lib/ruby/1.9.1/x86_64-linux
Activated Ruby gems
bundler => 1.5.2
Ruby load path ($LOAD_PATH)
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib
/usr/local/lib/site_ruby/1.9.1
/usr/local/lib/site_ruby/1.9.1/x86_64-linux
/usr/local/lib/site_ruby
/usr/lib/ruby/vendor_ruby/1.9.1
/usr/lib/ruby/vendor_ruby/1.9.1/x86_64-linux
/usr/lib/ruby/vendor_ruby
/usr/lib/ruby/1.9.1
/usr/lib/ruby/1.9.1/x86_64-linux
Ruby loaded libraries ($LOADED_FEATURES)
enumerator.so
/usr/lib/ruby/1.9.1/x86_64-linux/enc/encdb.so
/usr/lib/ruby/1.9.1/x86_64-linux/enc/trans/transdb.so
/usr/lib/ruby/1.9.1/rubygems/defaults.rb
/usr/lib/ruby/1.9.1/x86_64-linux/rbconfig.rb
/usr/lib/ruby/1.9.1/rubygems/deprecate.rb
/usr/lib/ruby/1.9.1/rubygems/exceptions.rb
/usr/lib/ruby/1.9.1/rubygems/custom_require.rb
/usr/lib/ruby/1.9.1/rubygems.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger.rb
/usr/lib/ruby/1.9.1/x86_64-linux/etc.so
/usr/lib/ruby/1.9.1/fileutils.rb
/usr/lib/ruby/1.9.1/tmpdir.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/utils/tmpio.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/platform_info.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/platform_info/operating_system.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/platform_info/ruby.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/platform_info/binary_compatibility.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/buildout/ruby/ruby-1.9.3-x86_64-linux/passenger_native_support.so
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/native_support.rb
/usr/lib/ruby/1.9.1/x86_64-linux/socket.so
/usr/lib/ruby/1.9.1/socket.rb
/usr/lib/ruby/1.9.1/thread.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/ruby_core_enhancements.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/utils/tmpdir.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/preloader_shared_helpers.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/constants.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/public_api.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/debug_logging.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/loader_shared_helpers.rb
/usr/lib/ruby/1.9.1/x86_64-linux/fcntl.so
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/message_channel.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/utils.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/message_client.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/utils/native_support_utils.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/utils/unseekable_socket.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/request_handler/thread_handler.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/request_handler.rb
/usr/lib/ruby/1.9.1/x86_64-linux/stringio.so
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/utils/tee_input.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/rack/thread_handler_extension.rb
/var/lib/gems/1.9.1/gems/passenger-4.0.37/lib/phusion_passenger/analytics_logger.rb
/usr/lib/ruby/1.9.1/rubygems/version.rb
/usr/lib/ruby/1.9.1/rubygems/requirement.rb
/usr/lib/ruby/1.9.1/rubygems/platform.rb
/usr/lib/ruby/1.9.1/rubygems/specification.rb
/usr/lib/ruby/1.9.1/rubygems/path_support.rb
/usr/lib/ruby/1.9.1/rubygems/dependency.rb
/usr/lib/ruby/1.9.1/x86_64-linux/pathname.so
/usr/lib/ruby/1.9.1/pathname.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/constants.rb
/usr/lib/ruby/1.9.1/rubygems/config_file.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/rubygems_integration.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/current_ruby.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/shared_helpers.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/gem_path_manipulation.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/gem_helpers.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/match_platform.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/rubygems_ext.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/version.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/settings.rb
/usr/lib/ruby/1.9.1/x86_64-linux/digest.so
/usr/lib/ruby/1.9.1/digest.rb
/usr/lib/ruby/1.9.1/x86_64-linux/digest/sha1.so
/usr/lib/ruby/1.9.1/set.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/definition.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/dependency.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/ruby_dsl.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/dsl.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/source.rb
/usr/lib/ruby/1.9.1/uri/common.rb
/usr/lib/ruby/1.9.1/uri/generic.rb
/usr/lib/ruby/1.9.1/uri/ftp.rb
/usr/lib/ruby/1.9.1/uri/http.rb
/usr/lib/ruby/1.9.1/uri/https.rb
/usr/lib/ruby/1.9.1/uri/ldap.rb
/usr/lib/ruby/1.9.1/uri/ldaps.rb
/usr/lib/ruby/1.9.1/uri/mailto.rb
/usr/lib/ruby/1.9.1/uri.rb
/usr/lib/ruby/1.9.1/rubygems/user_interaction.rb
/usr/lib/ruby/1.9.1/rubygems/remote_fetcher.rb
/usr/lib/ruby/1.9.1/rubygems/errors.rb
/usr/lib/ruby/1.9.1/rubygems/text.rb
/usr/lib/ruby/1.9.1/rubygems/spec_fetcher.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/source/rubygems.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/source/path.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/source/git.rb
/usr/lib/ruby/1.9.1/x86_64-linux/strscan.so
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/lockfile_parser.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/lazy_specification.rb
/usr/lib/ruby/1.9.1/tsort.rb
/usr/lib/ruby/1.9.1/forwardable.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/spec_set.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/environment.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/runtime.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/index.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/remote_specification.rb
/var/lib/gems/1.9.1/gems/bundler-1.5.2/lib/bundler/endpoint_specification.rb
/usr/lib/ruby/1.9.1/erb.rb

Here is my gem file

source 'https://rubygems.org'

gem 'rails', '3.2.17'

# Bundle edge Rails instead:
# gem 'rails', :git => 'git://github.com/rails/rails.git'

gem 'sqlite3'


# Gems used only for assets and not required
# in production environments by default.
group :assets do
  gem 'sass-rails',   '~> 3.2.3'
  gem 'coffee-rails', '~> 3.2.1'

  # See https://github.com/sstephenson/execjs#readme for more supported runtimes
  # gem 'therubyracer'

  gem 'uglifier', '>= 1.0.3'
end

gem 'jquery-rails'

# To use ActiveModel has_secure_password
 gem 'bcrypt-ruby', '~> 3.0.0'

# To use Jbuilder templates for JSON
# gem 'jbuilder'

# Use unicorn as the web server
# gem 'unicorn'

# Deploy with Capistrano
# gem 'capistrano'

# To use debugger
# gem 'ruby-debug19', :require => 'ruby-debug'

gem 'delayed_job_active_record'

gem 'handles_sortable_columns'

gem 'will_paginate', '~> 3.0.5'

gem 'forem', :github => "radar/forem", :branch => "rails3"

gem 'forem-bootstrap', :github => "radar/forem-bootstrap"

Your application is running as root, using system ruby, and you probably installed the gems as a different user, with a different ruby installation, i.e under rvm or rbenv.

The simplest solution would be to run bundle install as root. Good luck!