Sass import error in Rails 3 app - “File to import not found or unreadable: compass”

Question

I have a Rails 3 app on which I successfully ran compass init rails ./ --using blueprint. I can @import files from the /stylesheets directory, but

Answer 1

The @import command in Sass imports .scss or .sass files, not .css files.

It looks like something was missed in the install. (maybe the line compass install blueprint?) I followed the steps here: http://compass-style.org/reference/blueprint/ and was unable to recreate the issue.