bundler error

Steps taken:
1. Tried to run daemon, failed with error below (was using edge rails).
2. Ran a bundle install
3. Tried to run daemon, failed with error below (was using edge rails).
4. Changed Gemfile to specifically reference rails '3.0.0.rc2' (instead of edge).
5. Ran a bundle install
6. Tried to run daemon, failed with error below
7. Deleted Gemfile.lock
5. Ran a bundle install
6. Tried to run daemon, failed with error below
(I just cleared out the folder where bundler puts the gem files and now I'm doing a fresh 'bundle install' since that worked for me before.)

=> Loading Rails in the staging environment...
/opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/bundler-1.0.0.rc.6/lib
/bundler/source.rb:537:in `load_spec_files': git://github.com/rails/rails.git (a
t master) is not checked out. Please run `bundle install` (Bundler::GitError)
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/bundler-1
.0.0.rc.6/lib/bundler/source.rb:355:in `local_specs'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/bundler-1
.0.0.rc.6/lib/bundler/source.rb:520:in `specs'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/bundler-1
.0.0.rc.6/lib/bundler/definition.rb:334:in `converge_locked_specs'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/bundler-1
.0.0.rc.6/lib/bundler/definition.rb:323:in `each'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/bundler-1
.0.0.rc.6/lib/bundler/definition.rb:323:in `converge_locked_specs'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/bundler-1
.0.0.rc.6/lib/bundler/definition.rb:145:in `resolve'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/bundler-1
.0.0.rc.6/lib/bundler/definition.rb:93:in `specs'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/bundler-1
.0.0.rc.6/lib/bundler/definition.rb:137:in `specs_for'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/bundler-1
.0.0.rc.6/lib/bundler/definition.rb:126:in `requested_specs'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/bundler-1
.0.0.rc.6/lib/bundler/environment.rb:23:in `requested_specs'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/bundler-1
.0.0.rc.6/lib/bundler/runtime.rb:11:in `setup'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/bundler-1
.0.0.rc.6/lib/bundler.rb:100:in `setup'
        from /var/www/FlightLinkCR/current/config/boot.rb:8
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/site_ruby/1.8/rubygems/
custom_require.rb:31:in `gem_original_require'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/site_ruby/1.8/rubygems/
custom_require.rb:31:in `require'
        from /var/www/FlightLinkCR/current/config/application.rb:1
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/site_ruby/1.8/rubygems/
custom_require.rb:31:in `gem_original_require'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/site_ruby/1.8/rubygems/
custom_require.rb:31:in `require'
        from /var/www/FlightLinkCR/current/config/environment.rb:2
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/site_ruby/1.8/rubygems/
custom_require.rb:31:in `gem_original_require'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/site_ruby/1.8/rubygems/
custom_require.rb:31:in `require'
        from /var/www/FlightLinkCR/current/script/cr_daemon:22
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/daemons-1
.1.0/lib/daemons/application.rb:250:in `call'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/daemons-1
.1.0/lib/daemons/application.rb:250:in `start_proc'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/daemons-1
.1.0/lib/daemons/application.rb:261:in `call'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/daemons-1
.1.0/lib/daemons/application.rb:261:in `start_proc'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/daemons-1
.1.0/lib/daemons/application.rb:294:in `start'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/daemons-1
.1.0/lib/daemons/controller.rb:73:in `run'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/daemons-1
.1.0/lib/daemons.rb:193:in `run_proc'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/daemons-1
.1.0/lib/daemons/cmdline.rb:112:in `call'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/daemons-1
.1.0/lib/daemons/cmdline.rb:112:in `catch_exceptions'
        from /opt/ruby-enterprise-1.8.7-2009.10/lib/ruby/gems/1.8/gems/daemons-1
.1.0/lib/daemons.rb:192:in `run_proc'
        from /var/www/FlightLinkCR/current/script/cr_daemon:19