application.css not being served as an asset
EDIT 4, 5 and 6 8 hours in, any more ideas are welcome :) Maybe this bug is already known and solved, but I get the behaviour I described in edit 2&3, when you have this in a .css.erb file in app/assets/stylesheets : li { background-image: url(<%= asset_path "logo_80px_80px.png" %>); } The problem part seems to be the asset_path method call, but .css.scss also breaks it with: li { background-image: url(image-path("logo_80px_80px.png")); } My GemFile is: source 'http://rubygems.org' gem 'rails', '3.1.3' gem 'pg', '0.11.0' gem 'gravatar_image_tag', '1.0.0.pre2' gem 'will_paginate' gem 'rake' gem