Missing source file (valid in console, errors when accessed online)

Environment info:

Ruby 1.9.1-p376 Rails 2.3.5 Apache2 with Passenger mod

I installed the nokogiri gem like I would any other gem however when I require it at the top of my controller and access it through apache, I get an error saying "Missing source file" and it lists nokogiri. I have other gems required at the top and when I don't have nokogiri required everything works fine.

Also when I try requiring nokogiri in the console I don't get that error.

I was told that this is a Rails issue so any help would be appreciated.