After upgrading to rails3.2.1,this warning occurs:
You have Rails 2.3-style plugins in vendor/plugins! Support for these plugins will be removed in Rails 4.0. Move them
No one has mentioned converting to a Railtie or Rails::Engine.
Just move all of your ruby files into a gem [use bundle gem to create it for minimal friction].
Then have a look at the Railtie docs [and find your target Rails version]:
https://apidock.com/rails/v3.2.13/Rails/Railtie
It's quite easy to just convert an old plugin init.rb to a railtie in this way, and it gives you a pathway to Rails 4+.
Got views or controllers?, then use a Rails::Engine instead. While engines in gems can be complicated from a workflow standpoint, converting a plugin to one is pretty trivial.
Do yourself a favor and start building tests right in the gem, instead of in the Rails project.