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
Actually you cannot reference your image with /assets/home.png
path.
It will work in development mode, but in production all of your assets have a fingerprint in their filename (read this http://guides.rubyonrails.org/asset_pipeline.html#what-is-fingerprinting-and-why-should-i-care-questionmark)
That's why, in assets-pipeline enabled applications you need to reference all of your assets using helper methods. Read this doc to learn about the different helpers available in Ruby, JS and Sass files: http://guides.rubyonrails.org/asset_pipeline.html#coding-links-to-assets
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.