Rails no such file to load

PROBLEM:
getting this error when I try to run dispatch.fcgi:

/usr/local/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:31:in `gem_original_require': no such file to load -- application (MissingSourceFile)
from /usr/local/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:31:in `require'

I am using rails 2.1.0 and went through freezing rails http://www.hostingrails.com/wiki/2/Install-and-freeze-your-own-RubyGems to use it. My environment.rb matches this.

ANSWER:
Please try renaming app/controllers/application_controller.rb file to app/controllers/application.rb . 

EXPLANATION:
Rails 2.1.0 uses file app/controllers/application.rb
Rails 2.3.2 uses file app/controllers/application_controller.rb 

SOURCE:
http://www.hostingrails.com/4631/gem_original_require-no-such-file-to-load----application

Thanks!