tomcat and jruby rc2

Ok,

I have not logged a bug about this because I think it's probably some configuration issue; I am hoping you guys can just point me in the right direction. I start out with a working application that I can run just fine using jruby rc2 with webrick. I then attempt to create a war with warbler; I am pulling my hair out try to get it to work under tomcat 6.0.

Rails fails to find custom gems : INFO: Failed to load Rails: no such file to load -- ruport
 file:/C:/Program Files/Apache Software Foundation/Tomcat 6.0/webapps/my-app/WEB-INF/lib/jruby-complete-1.1RC2.jar!/META-INF/jruby.home/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:27:in `require'

I did manage to create a better war using just goldspike; that environment is using 'default user'. I am still having issues with static content. The app is able to find my stylesheest but not images and javascripts, especially active_scaffold related stuff. I also want to understand how tomcat decides between using jruby-complete jar versus the 'default user' directory. I am having a heck of a time getting warbler to package hpricot as well.


These are my gems. We are deploying to production in 3 weeks. We don't have the time to make rails 2.0 changes.
I have rails set to: RAILS_GEM_VERSION = '1.2.5'

*** LOCAL GEMS ***

actionmailer (2.0.2, 1.3.5)
actionpack (2.0.2, 1.13.5)
actionwebservice (1.2.6, 1.2.5)
activerecord (2.0.2, 1.15.5)
activerecord-jdbc-adapter (0.7.2)
activerecord-jdbcmysql-adapter (0.7.2)
activeresource (2.0.2)
activesupport (2.0.2, 1.4.4)
acts_as_reportable (1.0.1)
archive-tar-minitar (0.5.1)
color (1.4.0)
fastercsv (1.2.3)
glassfish (0.1.1)
hoe (1.5.0)
hpricot (0.6.157)
jdbc-mysql (5.0.4)
jrexml (0.5.3)
jruby-openssl (0.1.1)
json_pure (1.1.2)
mailfactory (1.2.3)
mime-types (1.15)
pdf-writer (1.1.7)
rails (2.0.2, 1.2.5)
rake (0.8.1)
rmagick4j (0.3.3)
rspec (1.1.3)
rubyforge (0.4.4)
rubyzip (0.9.1)
ruport (1.4.0)
ruport-util (0.13.0)
sources (0.0.1)
transaction-simple (1.4.0)
warbler (0.9.3)

Thanks,
Peter