I've also had to chmod 777 the tmp/sessions tmp/sockets and tmp/cache directories in the application root to get around a permissions error where rails could not write sessions. The directories were auto-generated for me though it seems some people have been posting about them being missing. Is there an underlying problem? I've never had to chmod anything with rails before.
Has anyone else encountered this wierdness. I'll admit that the upgrade to ruby1.8.4 and rails1.1 wasn't the smoothest for me. I buggered up some stuff and had a heck of a time getting it done so my installation could still be a little borked.