Cpanel doesn't work with Rails 3

It seems one can't run Rails 3 apps with cpanel:

Rails 3.0.0 is not compatible with mongrel at this time nor will it properly generate an application in cPanel > Ruby on Rails area due to the major differences in how applications are generated in that version versus Rails 2.3.8 and 2.3.9

For that reason, we've pulled Rails 3.0.0 from being installed as a gem and have set our installer to use Rails 2.3.8 for the time being.

If you decide to go to Rails 3.0.0, you will not be able to use cPanel to generate applications or to start / stop applications, and mongrel will not function with it. You'd have to manually install and manually start up or stop the application.

 

http://forums.cpanel.net/f5/rails-3-0-not-starting-163993.html

It has to do with the fact that cpanel runs mongrel, by calling mongrel_rails start (which doesn't work with Rails 3). I'd like to point out though, that generally mongrel works fine with rails, if mongrel is started by calling ./script/rails server. In other words, the problem is with cpanel, not rails, nor mongrel. I'd like to point out that the above quotation is by someone from the cpanel staff, so this must be an official position.

One might see my discussion of the matter here: http://vlexoforums.com/topic/8502-rails-3-issue/page__gopid__71428#entry71428