I am trying to get Capistrano up and running for the first time in a rails app. I have a linux server running Ubuntu 12.04, nginx, unicorn and rails, however, I seem to be r
I suspect this problem is because Bundler 1.3.5 is not compatible with the latest version of Capistrano. Try upgrading to the Bundler pre-releases: gem install bundler --pre.
I noticed also that you're using a very old version of Rails 3.2, which is probably vulnerable to some security exploits. I would really strongly recommend upgrading that version of Rails to something more recent, like Rails 3.2.14.