error in compass --watch

[ravenna]

I am getting setup to started editing my new spree site that uses
compass.

when I run compass --watch --trace I get the following output
>>> Compass is watching for changes. Press Ctrl-C to Stop.
FSSM::FileNotFoundError on line 84 of /usr/local/lib/ruby/gems/1.8/
gems/chriseppstein-compass-0.8.17/lib/vendor/fssm/path.rb: /Users/tjs/
Sites/testcart/src
/usr/local/lib/ruby/gems/1.8/gems/chriseppstein-compass-0.8.17/lib/
vendor/fssm/path.rb:3:in `initialize'
/usr/local/lib/ruby/gems/1.8/gems/chriseppstein-compass-0.8.17/lib/
vendor/fssm/monitor.rb:8:in `new'
/usr/local/lib/ruby/gems/1.8/gems/chriseppstein-compass-0.8.17/lib/
vendor/fssm/monitor.rb:8:in `path'
/usr/local/lib/ruby/gems/1.8/gems/chriseppstein-compass-0.8.17/lib/
compass/commands/watch_project.rb:26:in `perform'
/usr/local/lib/ruby/gems/1.8/gems/chriseppstein-compass-0.8.17/lib/
compass/commands/watch_project.rb:25:in `each'
/usr/local/lib/ruby/gems/1.8/gems/chriseppstein-compass-0.8.17/lib/
compass/commands/watch_project.rb:25:in `perform'
/usr/local/lib/ruby/gems/1.8/gems/chriseppstein-compass-0.8.17/lib/
vendor/fssm.rb:19:in `call'
/usr/local/lib/ruby/gems/1.8/gems/chriseppstein-compass-0.8.17/lib/
vendor/fssm.rb:19:in `monitor'
/usr/local/lib/ruby/gems/1.8/gems/chriseppstein-compass-0.8.17/lib/
compass/commands/watch_project.rb:24:in `perform'
/usr/local/lib/ruby/gems/1.8/gems/chriseppstein-compass-0.8.17/lib/
compass/commands/base.rb:15:in `execute'
/usr/local/lib/ruby/gems/1.8/gems/chriseppstein-compass-0.8.17/lib/
compass/commands/project_base.rb:19:in `execute'
/usr/local/lib/ruby/gems/1.8/gems/chriseppstein-compass-0.8.17/lib/
compass/exec.rb:242:in `do_command'
/usr/local/lib/ruby/gems/1.8/gems/chriseppstein-compass-0.8.17/lib/
compass/exec.rb:57:in `perform!'
/usr/local/lib/ruby/gems/1.8/gems/chriseppstein-compass-0.8.17/lib/
compass/exec.rb:40:in `run!'
/usr/local/lib/ruby/gems/1.8/gems/chriseppstein-compass-0.8.17/bin/
compass:8
/usr/local/bin/compass:19:in `load'
/usr/local/bin/compass:19


I have compass version 0.8.17
and Haml/Sass 2.2.9 (Powerful Penny)

Any help would be greatly appreciated as I am totally stuck in editing
my site.