Requiring with eRuby problem

[zotobi]

I have eRuby running on my Mac with a local dev server using MAMP
(Apache).

Whenever I try to 'require' a file other than stuff life 'cgi' I get a
500 Internal Server Error when trying to load the page in my browser.
So "require 'cgi'" works fine. But "require 'anylocalfile'" doesn't
work.

I'm using a .htaccess file to enable eRuby with the eRuby binary in
Apache's cgi-bin directory with the following in the .htaccess:

---
AddHandler cgi-script .rb
Action application/x-httpd-ruby /usr/local/bin/ruby

DirectoryIndex index.rhtml index.html index.htm
AddHandler application/x-httpd-eruby .rhtml
Action application/x-httpd-eruby /cgi-bin/eruby
---

..rhtml files work just fine until I try to include one of my own .rb
files within the htdocs root.

Any ideas?