Hello,

I wanted to chime in because I had a similar proble, Expected / 
.../app/controllers/application.rb to define Application. On production 
only. Rails 2.1.2, apache2, passenger.  This thread was helpful and I 
found in my stack trace the noted const_missing, originating at line 90 
in one of my classes, permission.rb

<pre>
vendor/rails/activesupport/lib/active_support/dependencies.rb:484:in 
`const_missing'
app/models/permission.rb:90:in `initialize_project'
</pre>

The method in question had a case statement like so:

<pre>
@project ||= case @resource
      when Project
        @resource
      ....
end
</pre>

It was crapping out on line 90, which was:
<pre>
when Project
</pre>

I tried giving it an absolute path to Project, like so:
<pre>
@project ||= case @resource
      when ::Project
        @resource
      ....
end
</pre>

And this solved the problem.

Hopefully that helps someone as this thread helped me.

sg
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