OCIError (ORA-01017: invalid username/password; login denied

We're trying to deploy our system on a separate server and have run into nothing but trouble; specifically I get the error mentioned in the subject. The username/password combo is correct (I verified it via SQL+). Manually running script/server works fine in production or development mode. Heck, running script/console also works fine. It's just that when it automatically starts up as part of server startup that I get this error; it's unfortunately exactly that situation that we need to use it.

My database.yml looks like:

development:   adapter: oracle_enhanced   database: blarg   username: abcde   password: abcde

production:   adapter: oracle_enhanced   database: blarg   username: abcde   password: abcde

I've googled all over the place for answers to this but all I find are threads where somebody has the problem and nobody has a solution. Any help is welcome!

When I deploy to production using Oracle, I have to set two environment variables:

LD_LIBRARY_PATH=/usr/local/lib ORACLE_HOME=/home/oracle