diff --git a/app/models/setting.rb b/app/models/setting.rb
index 0cab33d2f9..a43ce4cc47 100644
--- a/app/models/setting.rb
+++ b/app/models/setting.rb
@@ -114,8 +114,9 @@ def database_and_table_exists?
     # Loads settings from YAML files
     def load_settings_from_yaml
       @@yaml_settings = {}.with_indifferent_access
+      
       setting_files = [
-        Rails.root.join("config", "settings.default.yml"),
+        FatFreeCRM.root.join("config", "settings.default.yml"),
         Rails.root.join("config", "settings.yml")
       ]
 
diff --git a/app/views/layouts/_tabbed.html.haml b/app/views/layouts/_tabbed.html.haml
index b7f7453053..cee902e9f1 100644
--- a/app/views/layouts/_tabbed.html.haml
+++ b/app/views/layouts/_tabbed.html.haml
@@ -5,7 +5,7 @@
         = link_to(tab[:url], :class => tab[:active] ? "active" : "") do
           - unless request.fullpath.include?("/admin")
             - img_base_path = "tab_icons/#{tab[:text].to_s.downcase.sub(/^tab_/, '')}"
-            - if File.exists?(Rails.root.join("vendor/assets/images/#{img_base_path}.png"))
+            - if Rails.application.assets.find_asset("#{img_base_path}.png")
               = image_tag("#{img_base_path}#{tab[:active] ? "_active" : ""}.png")
           = t(tab[:text])
 
diff --git a/config.ru b/config.ru
index d2881ce4c3..d71c08dff8 100644
--- a/config.ru
+++ b/config.ru
@@ -1,7 +1,4 @@
-require 'rubygems'
-require 'bundler'
+# This file is used by Rack-based servers to start the application.
 
-Bundler.require :default, :development
-
-Combustion.initialize!
-run Combustion::Application
+require ::File.expand_path('../config/environment',  __FILE__)
+run FatFreeCRM::Application
diff --git a/config/application.rb b/config/application.rb
index 94cefebda0..b65a195829 100644
--- a/config/application.rb
+++ b/config/application.rb
@@ -1,9 +1,7 @@
 require File.expand_path('../boot', __FILE__)
 
-# Use the Syck YAML parser
-require 'fat_free_crm/syck_yaml'
-
 require 'rails/all'
+require 'fat_free_crm/syck_yaml'
 
 if defined?(Bundler)
   # If you precompile assets before deploying to production, use this line
diff --git a/config/environments/development.rb b/config/environments/development.rb
new file mode 100644
index 0000000000..b852017a03
--- /dev/null
+++ b/config/environments/development.rb
@@ -0,0 +1,37 @@
+FatFreeCRM::Application.configure do
+  # Settings specified here will take precedence over those in config/application.rb
+
+  # In the development environment your application's code is reloaded on
+  # every request. This slows down response time but is perfect for development
+  # since you don't have to restart the web server when you make code changes.
+  config.cache_classes = false
+
+  # Log error messages when you accidentally call methods on nil.
+  config.whiny_nils = true
+
+  # Show full error reports and disable caching
+  config.consider_all_requests_local       = true
+  config.action_controller.perform_caching = false
+
+  # Don't care if the mailer can't send
+  config.action_mailer.raise_delivery_errors = false
+
+  # Print deprecation notices to the Rails logger
+  config.active_support.deprecation = :log
+
+  # Only use best-standards-support built into browsers
+  config.action_dispatch.best_standards_support = :builtin
+
+  # Raise exception on mass assignment protection for Active Record models
+  config.active_record.mass_assignment_sanitizer = :strict
+
+  # Log the query plan for queries taking more than this (works
+  # with SQLite, MySQL, and PostgreSQL)
+  config.active_record.auto_explain_threshold_in_seconds = 0.5
+
+  # Do not compress assets
+  config.assets.compress = false
+
+  # Expands the lines which load the assets
+  config.assets.debug = true
+end
diff --git a/fat_free_crm.gemspec b/fat_free_crm.gemspec
index 37f50fe486..9fbb427116 100644
--- a/fat_free_crm.gemspec
+++ b/fat_free_crm.gemspec
@@ -36,7 +36,7 @@ Gem::Specification.new do |gem|
   gem.add_development_dependency 'spork'
   gem.add_development_dependency 'database_cleaner'
   gem.add_development_dependency 'fuubar'
-  gem.add_development_dependency 'factory_girl', '~> 2.6.0'
+  gem.add_development_dependency 'factory_girl', '~> 2.6.1'
 end
 
 
diff --git a/lib/fat_free_crm.rb b/lib/fat_free_crm.rb
index 8134a1e891..b06ceb28e9 100644
--- a/lib/fat_free_crm.rb
+++ b/lib/fat_free_crm.rb
@@ -15,6 +15,9 @@
 # along with this program.  If not, see <http://www.gnu.org/licenses/>.
 #------------------------------------------------------------------------------
 
+# Use the Syck YAML parser
+require 'fat_free_crm/syck_yaml'
+
 require "fat_free_crm/gem_dependencies"
 require "fat_free_crm/gem_ext"
 require "fat_free_crm/plugin_dependencies"
@@ -38,3 +41,12 @@
 require "fat_free_crm/callback"
 require "fat_free_crm/dropbox" if defined?(::Rake)
 require "fat_free_crm/plugin"
+
+
+module FatFreeCRM
+  # Return the root path of either the Application or the Engine,
+  # depending on how Fat Free CRM is loaded
+  def self.root
+    (defined?(Application) ? Application : Engine).root
+  end
+end
\ No newline at end of file
diff --git a/script/rails b/script/rails
index 7ab83d44c9..f8da2cffd4 100755
--- a/script/rails
+++ b/script/rails
@@ -1,8 +1,6 @@
 #!/usr/bin/env ruby
 # This command will automatically be run when you run "rails" with Rails 3 gems installed from the root of your application.
 
-ENGINE_ROOT = File.expand_path('../..', __FILE__)
-ENGINE_PATH = File.expand_path('../../lib/fat_free_crm/engine', __FILE__)
-
-require 'rails/all'
-require 'rails/engine/commands'
+APP_PATH = File.expand_path('../../config/application',  __FILE__)
+require File.expand_path('../../config/boot',  __FILE__)
+require 'rails/commands'