Rails and passenger

My rails app does not work after updating to passenger, the error seems to be in environment.rb, but it works without passenger:
undefined local variable or method `config’ for main:Object

Another site that has the same problem is http://www.hotemogirls.info/

Has anyone else seen this, is it a know problem?

I have never seen this. Could you show the contents of your environment.rb file, especially the lines where the error is being triggered?