Starting with a fresh rails 3.0.5 application, adding authlogic causes a webbrick server to not respond to Ctrl-C (it should exit).
gem 'rails', '3.0.5'
gem "authlogic", :git => 'https://github.com/binarylogic/authlogic.git'
Using ruby 1.9.2p180 (2011-02-18 revision 30909) [x86_64-linux]
I don't think this is an Authlogic issue. I have the same issue and I'm not using Authlogic in this app. I've read elsewhere that it's related to passing :git => 'foo.git' in the Gemfile.
Ok to close?