Working on rails, images are not visible and giving error.
Started GET \"/assets/home.png\" for 127.0.0.1 at 2012-06-19 12:23:24 +0530
Served asset /home.png
The lack of a fingerprint in the file request suggests that you are running this in development. I am also going to guess that this is an app upgraded from an older version of Rails.
Any images need to be in the folder /assets/images for the pipeline to work.
Also, you do not need to precompile when in development mode.
Delete the public/assets folder, delete the folder tmp/cache/assets, and restart your server.
If this images are in the correct location, it should work.