Ruby on Rails

Im working on an app but have been plagued by an unrecoverable error

module ApplicationConfiguration
require 'ostruct'
require 'yaml'

if File.exists?( File.join(Rails.root, 'config',
'application.yml') )
file = File.join(Rails.root, 'config', 'application.yml')
users_app_config = YAML.load_file file
end

#default_app_config = YAML.load_file(File.join(RAILS_ROOT, 'vendor',
'plugins', 'config', 'application.yml'))
default_app_config = YAML.load_file(File.join(Rails.root, 'config',
'application.yml'))

config_hash = (users_app_config||{}).reverse_merge!
(default_app_config)

unless defined?(AppConfig)
::AppConfig = OpenStruct.new config_hash
else
orig_hash = AppConfig.marshal_dump
merged_hash = config_hash.merge(orig_hash)

AppConfig = OpenStruct.new merged_hash
end
end

Results in

Booting Mongrel
=> Rails 2.3.5 application starting on http://0.0.0.0:3000
/Library/Ruby/Gems/1.8/gems/desert-0.5.3/lib/desert/rails/
dependencies.rb:15:in `load_missing_constant': Constant AppConfig from
app_config.rb not found (NameError)
from /Library/Ruby/Gems/1.8/gems/activesupport-2.3.5/lib/
active_support/dependencies.rb:80:in
`const_missing_not_from_s3_library'
from /Library/Ruby/Gems/1.8/gems/aws-s3-0.6.2/lib/aws/s3/
extensions.rb:206:in `const_missing'
from /Library/Ruby/Gems/1.8/gems/activesupport-2.3.5/lib/
active_support/dependencies.rb:92:in `const_missing'
from /Users/me/Desktop/codes/apache2/rubydocs/portal/config/
initializers/mce_options.rb:1
from /Library/Ruby/Gems/1.8/gems/activesupport-2.3.5/lib/
active_support/dependencies.rb:145:in
`load_without_new_constant_marking'
from /Library/Ruby/Gems/1.8/gems/activesupport-2.3.5/lib/
active_support/dependencies.rb:145:in `load_without_desert'
from /Library/Ruby/Gems/1.8/gems/activesupport-2.3.5/lib/
active_support/dependencies.rb:521:in `new_constants_in'
from /Library/Ruby/Gems/1.8/gems/activesupport-2.3.5/lib/
active_support/dependencies.rb:145:in `load_without_desert'
from /Library/Ruby/Gems/1.8/gems/desert-0.5.3/lib/desert/ruby/
object.rb:18:in `load'
from /Library/Ruby/Gems/1.8/gems/desert-0.5.3/lib/desert/ruby/
object.rb:32:in `__each_matching_file'
from /Library/Ruby/Gems/1.8/gems/desert-0.5.3/lib/desert/ruby/
object.rb:17:in `load'
from /Library/Ruby/Gems/1.8/gems/rails-2.3.5/lib/initializer.rb:
622:in `load_application_initializers'
from /Library/Ruby/Gems/1.8/gems/rails-2.3.5/lib/initializer.rb:
621:in `each'
from /Library/Ruby/Gems/1.8/gems/rails-2.3.5/lib/initializer.rb:
621:in `load_application_initializers'
from /Library/Ruby/Gems/1.8/gems/rails-2.3.5/lib/initializer.rb:
176:in `process'
from /Library/Ruby/Gems/1.8/gems/rails-2.3.5/lib/initializer.rb:
113:in `send'
from /Library/Ruby/Gems/1.8/gems/rails-2.3.5/lib/initializer.rb:
113:in `run'
from /Users/me/Desktop/codes/apache2/rubydocs/portal/config/
environment.rb:5
from /Library/Ruby/Site/1.8/rubygems/custom_require.rb:31:in
`gem_original_require'
from /Library/Ruby/Site/1.8/rubygems/custom_require.rb:31:in
`require'
from /Library/Ruby/Gems/1.8/gems/activesupport-2.3.5/lib/
active_support/dependencies.rb:156:in `require'
from /Library/Ruby/Gems/1.8/gems/activesupport-2.3.5/lib/
active_support/dependencies.rb:521:in `new_constants_in'
from /Library/Ruby/Gems/1.8/gems/activesupport-2.3.5/lib/
active_support/dependencies.rb:156:in `require'
from /Library/Ruby/Gems/1.8/gems/rails-2.3.5/lib/commands/server.rb:
84
from /Library/Ruby/Site/1.8/rubygems/custom_require.rb:31:in
`gem_original_require'
from /Library/Ruby/Site/1.8/rubygems/custom_require.rb:31:in
`require'
from /Users/me/Desktop/codes/apache2/rubydocs/portal/script/server:3
from -e:1:in `load'
from -e:1

Process finished with exit code 1

Anyone any idea how I could fix this or any point in the right
direction?
It seems to have something to do with desert plugin, it also seems
app_config.rb is non existant

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