Blocker bug in Rails

Hi all

For some time we've tried to upgrade our FIRMS application from Rails
1.1.6 to Rails 1.2.x.
Our recent experience has been a lot of NameError's as described in

The latter one is a blocker and high prio, although I was surprised to
find no mentioning of it in today's Rails 1.2.3 release.
Does anyone know of any development around here? Any other people
having trouble to get around it? The cause of the bug is mysterious to
me. It has been mentioned that it was caused by include statements
outside of a class, but this did not resolve our problems.

We are running on Ruby 1.8.5 and Linux.

Any help or suggestions would be appreciated