[Rails] Rails 3.1.0 cannot connect to sqlite database on Mac Lion

I'm running Rails 3.2.3 on Mac Lion with sqlite 3.7.7 and ruby 1.9.3p125.  I need to back down rails to 3.1.0 for a project but when I do that a simple index page give me a 

ActiveRecord::ConnectionNotEstablished

error.

Rails 3.2.3 works, 3.1.0 not.  Any ideas?

Just to show you it's nothing fancy....

Gem file is only:  

source 'https://rubygems.org'

gem 'rails', '3.1.0'

# Bundle edge Rails instead:

# gem 'rails', :git => 'git://github.com/rails/rails.git'

gem 'sqlite3'

# Gems used only for assets and not required

# in production environments by default.

group :assets do

  gem 'sass-rails'

  gem 'coffee-rails'

  # See https://github.com/sstephenson/execjs#readme for more supported runtimes

  # gem 'therubyracer', :platform => :ruby

  gem 'uglifier', '>= 1.0.3'

end

gem 'jquery-rails'

Routes:

root :to => "home#index"

home controller:  

class HomeController < ApplicationController

  def index

  end

end