Rails 3 site not working


I'm trying to get a Rails 3 (latest version) site running on Litespeed (also latest version). I have installed ruby-lsapi 4.0 and ruby 1.9.3p194. When I start Litespeed I get the following error in stderr.log:

from /usr/local/lsws/fcgi-bin/RailsRunner.rb:9:in `<main>'
2012-07-27 19:31:20.096 [STDERR] /usr/local/rvm/rubies/ruby-1.9.3-p194/lib/ruby/site_ruby/1.9.1/rubygems/custom_require.rb:36:in `require': cannot load such file -- config/boot (LoadError)
from /usr/local/rvm/rubies/ruby-1.9.3-p194/lib/ruby/site_ruby/1.9.1/rubygems/custom_require.rb:36:in `require'
from /usr/local/lsws/fcgi-bin/RailsRunner.rb:9:in `<main>'
Any ideas how I can fix this? Many thanks in advance.

Kind regards,