Today I learned that order does matter in your Gemfile.

I got the error uninitialized constant Capistrano (NameError) in the app I was developing when I tried to boot my local server. I had gem 'rvm-capistrano' listed before gem 'capistrano' - I guess when Rails tried to boot the app it read Capistrano from rvm-capistrano and assumed that Capistrano wasn't installed.

I intend to look deeper into this problem, but wanted to notfiy anyone who comes across the same issue.

I ended up solving this problem through Ruby Forum from someone with a very similar problem but slightly different solution.