first, here are my versions:
Greg-Nowickis-MacBook-Pro:sample_app Greg_Nowicki$ ruby -v ruby 2.0.0p451 (2014-02-24 revision 45167) [x86_64-darwin13.1.0] Greg
In config/environments/development.rb:
change
Rails.application.configure do
to
SampleApp::Application.configure do
I checked a couple of my applications, and thats the format I have them.