Also...
a)  gem install rails <- did that
b)  upgrade RAILS_ENV to 2.2.2 <- u probably mean RAILS_GEM_VERSION =
'2.2.2' unless defined? RAILS_GEM_VERSION ?
c)  rake rails:update <- did that
d)  check the routes file for correctness <- they are working normally
(i.e. when deploying directly to the DocumentRoot)
e)  run your application locally using mongrel <- works