gistfile1.txt

And I press "login-button"

You have a nil object when you didn't expect it!
You might have expected an instance of Array.
The error occurred while evaluating nil.each

 <fieldset id="options">
    <p><%=link_to "Forgot Password?", {:controller => "auth", :action => 'password_recovery'} %></p>
    <%= image_submit_tag "buttonLoginGo.jpg", :id => "login-button" %>
    <p><%= link_to "New User?", :action => 'new_user' %></p>
  </fieldset>