Authlogic -> Production Server

Sorry if this is a repost. I never received a successful post msg.

So this is my first deployment. I've used Capistrano and Git. CPanel
to install all the gems (with some added server support for additional
gems). CPanel is used to start/stop the app. In development mode the
app starts and runs into a db problem (expected I never copied the
sqlite3 db). But it starts. In production mode the mongrel instance
never fully loads it looks like it stalling on something to do with
authlogic. The mongrel.log shows the following:

** Starting Mongrel listening at 0.0.0.0:12003
** Starting Rails with production environment...
/home/user/rails_apps/myapp/vendor/plugins/paperclip/lib/paperclip.rb:
49: warning: already initialized constant VERSION
/usr/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/active_record/
base.rb:1959:in `method_missing': undefined local variable or method
`acts_as_authentic' for #<Class:0xb773bac4> (NameError)
  from /home/user/rails_apps/myapp/app/models/user.rb:3
  from /usr/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:31:in
`gem_original_require'
  from /usr/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:31:in
`require'
  from /usr/lib/ruby/gems/1.8/gems/activesupport-2.3.5/lib/
active_support/dependencies.rb:158:in `require'
  from /usr/lib/ruby/gems/1.8/gems/activesupport-2.3.5/lib/
active_support/dependencies.rb:265:in `require_or_load'
  from /usr/lib/ruby/gems/1.8/gems/activesupport-2.3.5/lib/
active_support/dependencies.rb:224:in `depend_on'
  from /usr/lib/ruby/gems/1.8/gems/activesupport-2.3.5/lib/
active_support/dependencies.rb:136:in `require_dependency'
  from /usr/lib/ruby/gems/1.8/gems/rails-2.3.5/lib/initializer.rb:
414:in `load_application_classes'
  from /usr/lib/ruby/gems/1.8/gems/rails-2.3.5/lib/initializer.rb:
413:in `each'
  from /usr/lib/ruby/gems/1.8/gems/rails-2.3.5/lib/initializer.rb:
413:in `load_application_classes'
  from /usr/lib/ruby/gems/1.8/gems/rails-2.3.5/lib/initializer.rb:
411:in `each'
  from /usr/lib/ruby/gems/1.8/gems/rails-2.3.5/lib/initializer.rb:
411:in `load_application_classes'
  from /usr/lib/ruby/gems/1.8/gems/rails-2.3.5/lib/initializer.rb:
197:in `process'
  from /usr/lib/ruby/gems/1.8/gems/rails-2.3.5/lib/initializer.rb:
113:in `send'
  from /usr/lib/ruby/gems/1.8/gems/rails-2.3.5/lib/initializer.rb:
113:in `run'
  from /home/user/rails_apps/myapp/config/environment.rb:9
  from /usr/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:31:in
`gem_original_require'
  from /usr/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:31:in
`require'
  from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/../lib/mongrel/
rails.rb:147:in `rails'
  from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/mongrel_rails:
113:in `cloaker_'
  from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/../lib/mongrel/
configurator.rb:149:in `call'
  from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/../lib/mongrel/
configurator.rb:149:in `listener'
  from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/mongrel_rails:
99:in `cloaker_'
  from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/../lib/mongrel/
configurator.rb:50:in `call'
  from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/../lib/mongrel/
configurator.rb:50:in `initialize'
  from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/mongrel_rails:
84:in `new'
  from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/mongrel_rails:
84:in `run'
  from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/../lib/mongrel/
command.rb:212:in `run'
  from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/mongrel_rails:281
  from /usr/bin/mongrel_rails:19:in `load'
  from /usr/bin/mongrel_rails:19

And here is my environment file:

RAILS_GEM_VERSION = '2.3.5' unless defined? RAILS_GEM_VERSION

# Bootstrap the Rails environment, frameworks, and default
configuration
require File.join(File.dirname(__FILE__), 'boot')

ENV['GEM_PATH'] = '/home/user/ruby/gems'
$:.push("/home/user/ruby/gems")

Rails::Initializer.run do |config|

  config.gem "authlogic", :version => '2.1.3'
  config.gem "jeffp-
enumerated_attribute", :lib=>"enumerated_attribute"
  config.gem 'will_paginate', :version => '~> 2.3.12', :source =>
'http://gemcutter.org'

  config.time_zone = 'UTC'
end

Any ideas why it won't load in production mode?