Susy not found or unreadable

[Jack Wheeler]

I have just installed Susy on Windows7. I followed the directions on
the oddbird tutorial and set up a project. Everything seems to get
installed and set up normally, but when I set compass to watch, I get
the error: "Syntax error: File to import not found or unreadable:
susy." Susy does not show up in the load paths:
Load paths:
C:/Users/Jack/path-to-webroot/www/cornerstone/sass
C:/Program Files (x86)/Scout/vendor/gems/gems/
compass-0.11.5/frameworks/blueprint/stylesheets
C:/Program Files (x86)/Scout/vendor/gems/gems/
compass-0.11.5/frameworks/compass/stylesheets
C:/Program Files (x86)/Scout/vendor/gems/gems/
compass-960-plugin-0.10.4/stylesheets
C:/Program Files (x86)/Scout/vendor/gems/gems/yui-
compass-plugin-0.3/stylesheets
Compass::SpriteImporter
on line 3 of C:/Users/Jack/path-to-webroot/www/cornerstone/
sass/_base.scss
from line 3 of C:/Users/Jack/path-to-webroot/www/cornerstone/
sass/screen.scss

Any input as to what I might be doing wrong?

Thanks,
Jack Wheeler