rails "You have already activated rack 1.2.1, but your Gemfile requires rack 1.3.2" = Rails 3.1 + Passenger Latest release of Ruby on Rails (3.1) moved from rack 1.2.1 to rack 1.3.2, this a very big issue in the real world, because many shared hosting use latest "rack" package from the Linux distribution which is older compared to the rack you