Webrick: does it honour ENV['RAILS_ENV'] ||= 'production'

The ||= operator indicates that if RAILS_ENV isn't already set, then
Ruby should set it (in this case, to 'production'). I'm willing to
bet that WEBrick sets it to development before it gets to that line
environment.rb. Try changing ||= to = (I don't know if that will
work).

--Jeremy