i am trying to deploy rails3 apps with the latest phusion passenger 2.2.11 and ruby-enterprise-1.8.7-2010.01. i am using bundler, but passenger seems to not be able to find
i think the command you are searching for is
bundle pack
which will move your gems from the .bundle directory to the vendor/cache.
see yehuda katz' posting about bundler workflows on his site: http://yehudakatz.com/2010/02/09/using-bundler-in-real-life/
more information on the bundler directory: you can add in you application.rb file the following line, which will change the bundler dir for phusion passenger:
ENV['BUNDLER_HOME']="/home/or-wherever-you-want-to-point-it"