We started to use memcache-client in our rails app and it works just fine with "script/server" but "mongrel_rails start" fails with an error. In environment.rb we define "memcache-client" and version "1.8.1". Gem list shows that the gem is installed: memcache-client (1.8.1). If run with "script/server" everything works but with "mongrel_rails start" it fails with error: no such file to load -- memcache-client Any advice what could be wrong here? Is there something different in the way mongrel_rails loads the gems compared to script/server? Or is my setup just broken?