Question updated, please read UPD2.

I'm trying to deploy app through passenger nginx module on DS710+ (ruby 1.9.2p0 installed). There is syntax error relative to has_and_belongs_to_many_association.rb file. Please look at the screenshot(deleted, question updated). I'm pretty sure the problem isn't in library file. App is running good via webrick. Could you please advise what to look for?

UPD1

ruby -v

ruby 1.9.2p0 (2010-08-18 revision 29036) [i686-linux]

gem list -d passenger

*** LOCAL GEMS ***

passenger (3.0.6)
Author: Phusion - http://www.phusion.nl/
Rubyforge: http://rubyforge.org/projects/passenger
Homepage: http://www.modrails.com/
Installed at: /usr/lib/ruby/gems/1.9.1

Easy and robust Ruby web application deployment

UPD2

I've decided to reinstall everything. It solved previous problem but caused another one. The error is: The application spawner server exited unexpectedly: Unexpected end-of-file detected. Here is screenshot.

New output:

ruby -v

ruby 1.9.2p180 (2011-02-18 revision 30909) [x86_64-linux]

gem list -d passenger

*** LOCAL GEMS ***

passenger (3.0.7)
Author: Phusion - http://www.phusion.nl/
Rubyforge: http://rubyforge.org/projects/passenger
Homepage: http://www.modrails.com/
Installed at: /usr/lib/ruby/gems/1.9.1

Nginx error.log:

[ pid=5653 thr=32771 file=ext/common/Watchdog.cpp:128 time=2011-04-20 14:08:34.505 ]: waitpid() on Phusion Passenger helper agent return -1 with errno = ECHILD, falling back to kill polling
[ pid=5654 thr=49156 file=ext/common/Watchdog.cpp:128 time=2011-04-20 14:08:34.506 ]: waitpid() on Phusion Passenger logging agent return -1 with errno = ECHILD, falling back to kill polling
2011/04/20 14:12:33 [notice] 7614#0: signal process started