Whenever I run rake in the project directory, it fails on rakelib/vm.rake:195 with an undefined method 'each' for nil:NilClass error.
I vaguely recall something similar...does this still occur, and are you using a 1.8 MRI?
I get the following when I try to run rake on iMac Leopard 10.5.6:
wrong number of arguments (4 for 1)
Darwin 156-56-171-49.dhcp-bl.indiana.edu 9.6.0 Darwin Kernel Version 9.6.0: Mon Nov 24 17:37:00 PST 2008; root:xnu-1228.9.59~1/RELEASE_I386 i386
"/rake-0.7.3/" is pretty old, can you update it and try again?
We only support rake 0.8 and up.