Phillip Koebbe from Ruby on Rails suggested inserting following code between the "bootstrap" and "initialize" sections of enviroment.rb. This hack fixes the problem.

if Gem::VERSION >= "1.3.6"
  module Rails
    class GemDependency
      def requirement
        r = super
        (r == Gem::Requirement.default) ? nil : r
      end
    end
  end
end

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