I\'m having a problem with my compass watch command - it worked fine up until a few days ago. I have made no changes to my config files.
I reinstalled Compass, used
I had the same problem and then I realised that I had two compass versions, so by doing:
compass watch
or compass compile
The compiler didn't know which compass version it should use to compile. So, what you can do is explicitly indicate the compass version to work with:
compass _1.0.3_ watch
There's another interesting thread.