Arkadiy,
Have you made any more progress here?
If you did manage to make modifications that enabled you to write a functioning rails app, I would appreciate it very much if you could post those modifications here. Even posting your files (which I could then diff against the non-modified rails files) would be a great help, if listing your changes would be too time consuming.
I can't understand how some people (you and me, for example) get this error that prevents even the most trivially simple rails app from functioning, yet the vast majority of people get no error. I really don't understand it at all.
Thanks a lot for all your work.