You are running production in your webserver (presumably on port 80) and
development on the command line. This is normal. They are separate contexts.
The httpd config only applies to the Web server, not a terminal session. If
you would start Webrick or other Rails server from the command line, it would
run the development environment on port 3000. If you want to run in
production mode from the command line, type "export RAILS_ENV=production" in
bash or the equivalent in other shells (e.g. "RAILS_ENV=production; export
RAILS_ENV" in sh).
HTH,
Jeffrey