UPDATE: Colin\'s suggestion of removing the line //= require_tree . has fixed the issue.
I have wasted over 2 days trying to follow every suggestion
I had this problem and was scowering the internet I am running Windows 8 with this rails gem file
source 'https://rubygems.org'
gem 'rails', '3.2.9'
# Bundle edge Rails instead:
# gem 'rails', :git => 'git://github.com/rails/rails.git'
group :development do gem 'sqlite3', '1.3.5'
end
# Gems used only for assets and not required # in production environments by default.
group :assets do
gem 'sass-rails', '3.2.5'
gem 'coffee-rails', '3.2.2'
gem 'uglifier', '1.2.3'
end
gem 'jquery-rails', '2.0.2'
group :production do
gem 'pg', '0.12.2'
end
Went to http://nodejs.org/download/ installed - restarted the machine and everything worked.