I experienced this situation..
I don't know exactly, but can you check your mongrel directory's name?
Maybe It is not "mongrel-1.1.1-x86-mswin32-60"
Just change the directory name to "mongrel-1.1.1-x86-mswin32-60"
It works very well when you start mongrel server on command line
But, while you are using the radrails IDE, It doesn't recognized the mongrel
server where it installed nor.
