Adam Wilson wrote:
Anyone...?
Excuse the bump... I am just a bit baffled by this one! Thx
You couldn't even wait 24 hours before bumping? That just makes us less
likely to want to bother to help you. Patience, grasshopper... 
Best,
OK
Just worked it out:
In my layouts folder I had an old file called application.html.erb.old - for some reason rails was using that instead of application.html.erb in the same folder. So I removed the old one. And then it threw an error saying it cannot find application.erb...
So I renamed application.html.erb to application.erb, and voila problem solved!
Strange huh?
I thought it was using some default layout hidden somewhere.. but no it was right there in the layouts folder!
(Rails is v2.3.3)