Ruby for Redmine not running in cPanel

Whenever clicking the "Run" button in cPanel in the RubyOnRails section, nothing happens. Ruby is needed to run Redmine 1.1.2 (http://www.redmine.org/projects/redmine/wiki/RedmineInstall). The error seemed to happen after either copying over Redmine 1.3.2, and then trying to merge the database with the rack/rake command.

So far, we've tried reinstalling Rails, installing/updating/removing/reinstalling multiple gems, and restoring rails/Redmine folders before Rails was updated.

The mongrel.log:

** Daemonized, any open files are closed. Look at log/mongrel.pid and log/mongrel.log for info. ** Starting Mongrel listening at 0.0.0.0:12001 ** Starting Rails with production environment... /usr/lib/ruby/1.8/yaml.rb:133:inload': syntax error on line 1, col 4: `name: coderay^MM' (ArgumentError)

    from /usr/lib/ruby/1.8/yaml.rb:133:in `load'
    from /usr/lib/ruby/1.8/yaml.rb:144:in `load_file'
    from /usr/lib/ruby/1.8/yaml.rb:143:in `open'
    from /usr/lib/ruby/1.8/yaml.rb:143:in `load_file'
    from /home/eternal/public_html_tasks/config/../vendor/rails/railties/lib/rails/vendor_gem_source_index.rb:110:in `load_specification'
    from /home/eternal/public_html_tasks/config/../vendor/rails/railties/lib/rails/vendor_gem_source_index.rb:48:in `refresh!'
    from /home/eternal/public_html_tasks/config/../vendor/rails/railties/lib/rails/vendor_gem_source_index.rb:45:in `each'
    from /home/eternal/public_html_tasks/config/../vendor/rails/railties/lib/rails/vendor_gem_source_index.rb:45:in `refresh!'
    from /home/eternal/public_html_tasks/config/../vendor/rails/railties/lib/rails/vendor_gem_source_index.rb:29:in `initialize'
    from /home/eternal/public_html_tasks/config/../vendor/rails/railties/lib/rails/gem_dependency.rb:21:in `new'
    from /home/eternal/public_html_tasks/config/../vendor/rails/railties/lib/rails/gem_dependency.rb:21:in `add_frozen_gem_path'
    from /home/eternal/public_html_tasks/config/boot.rb:47:in `load_initializer'
    from /home/eternal/public_html_tasks/config/boot.rb:38:in `run'
    from /home/eternal/public_html_tasks/config/boot.rb:11:in `boot!'
    from /home/eternal/public_html_tasks/config/boot.rb:122
    from /usr/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:36:in `gem_original_require'
    from /usr/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:36:in `require'
    from /home/eternal/public_html_tasks/config/environment.rb:11
    from /usr/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:36:in `gem_original_require'
    from /usr/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:36:in `require'
    from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/../lib/mongrel/rails.rb:147:in `rails'
    from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/mongrel_rails:113:in `cloaker_'
    from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/../lib/mongrel/configurator.rb:149:in `call'
    from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/../lib/mongrel/configurator.rb:149:in `listener'
    from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/mongrel_rails:99:in `cloaker_'`

And local gems:

actionmailer (3.2.3, 2.3.8) actionpack (3.2.3, 2.3.8) activemodel (3.2.3) activerecord (2.3.8) activeresource (2.3.8) activesupport (3.2.3, 2.3.8) builder (3.0.0) erubis (2.7.0) hike (1.2.1) i18n (0.6.0) journey (1.0.3) mail (2.4.4) mime-types (1.18) multi_json (1.2.0) polyglot (0.3.3) rack (1.4.1, 1.1.3) rack-cache (1.2) rack-test (0.6.1) rails (2.3.8) rake (0.8.7) rubygems-update (1.8.7, 1.6.2) sprockets (2.1.2) tilt (1.3.3) treetop (1.4.10)

If it helps, yesterday a different mongrel.log error was fixed by running gem update --system 1.6.2. Now, the above is happening.

Any help would be appreciated. We've been trying to fix this issue for days now.