Please make sure "ruby path" has been set properly,
"Memory Soft/Hard Limit" and "Process Soft/Hard Limit" has been set high enough under both "Rails" and "Security" tab.
If you server is reachable over internet, I can take a look for you.
Thanks for all your help! I was able to compile it and finally get it working with gcc 3.4.5 from blastwave. Everything is working great now. Thanks again!