I am trying to use Authlogic-connect as a plugin in Rails 3 in place of a gem. I have made an entry in the gemfile as

  gem "authlogic-connect", :require => "authlogic-connect", :path => "localgems"

Now when I run the bundle install, it runs fine. When I try to start the server i get the error

Could not find gem 'authlogic-connect (>= 0, runtime)' in source at localgems.
Source does not contain any versions of 'authlogic-connect (>= 0, runtime)'
Try running `bundle install`.

I have placed the unzipped Gem renamed as authlogic-connect in the localgems folder. what is the problem?

Here is what I get on using rails plugin install

arkidmitra$ rails plugin install git://github.com/viatropos/authlogic-connect.git
Usage:
  rails new APP_PATH [options]

Options:
      [--skip-gemfile]        # Don't create a Gemfile
  -d, [--database=DATABASE]   # Preconfigure for selected database (options: mysql/oracle/postgresql/sqlite3/frontbase/ibm_db)
                              # Default: sqlite3
  -O, [--skip-active-record]  # Skip Active Record files
      [--dev]                 # Setup the application with Gemfile pointing to your Rails checkout
  -J, [--skip-prototype]      # Skip Prototype files
  -T, [--skip-test-unit]      # Skip Test::Unit files
  -G, [--skip-git]            # Skip Git ignores and keeps
  -r, [--ruby=PATH]           # Path to the Ruby binary of your choice
                              # Default: /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/bin/ruby
  -m, [--template=TEMPLATE]   # Path to an application template (can be a filesystem path or URL)
  -b, [--builder=BUILDER]     # Path to an application builder (can be a filesystem path or URL)
      [--edge]                # Setup the application with Gemfile pointing to Rails repository

Runtime options:
  -q, [--quiet]    # Supress status output
  -s, [--skip]     # Skip files that already exist
  -f, [--force]    # Overwrite files that already exist
  -p, [--pretend]  # Run but do not make any changes

Rails options:
  -h, [--help]     # Show this help message and quit
  -v, [--version]  # Show Rails version number and quit

Description:
    The 'rails new' command creates a new Rails application with a default
    directory structure and configuration at the path you specify.

Example:
    rails new ~/Code/Ruby/weblog

    This generates a skeletal Rails installation in ~/Code/Ruby/weblog.
    See the README in the newly created application to get going.