Rails 3, Thin and Nginx

When I try to start thin and hit the URL, I get the below error. Any pointers on how can i resolve this?

/usr/lib/ruby/gems/1.8/gems/rspec-core-2.3.1/lib/rspec/core/configuration_options.rb:9:in `expand_path': couldn't find HOME environment -- expanding `~' (ArgumentError)
    from /usr/lib/ruby/gems/1.8/gems/rspec-core-2.3.1/lib/rspec/core/configuration_options.rb:9
    from /usr/lib/ruby/gems/1.8/gems/activesupport-3.0.3/lib/active_support/dependencies.rb:239:in `require'
    from /usr/lib/ruby/gems/1.8/gems/activesupport-3.0.3/lib/active_support/dependencies.rb:239:in `require'
    from /usr/lib/ruby/gems/1.8/gems/activesupport-3.0.3/lib/active_support/dependencies.rb:225:in `load_dependency'
    from /usr/lib/ruby/gems/1.8/gems/activesupport-3.0.3/lib/active_support/dependencies.rb:596:in `new_constants_in'
    from /usr/lib/ruby/gems/1.8/gems/activesupport-3.0.3/lib/active_support/dependencies.rb:225:in `load_dependency'
    from /usr/lib/ruby/gems/1.8/gems/activesupport-3.0.3/lib/active_support/dependencies.rb:239:in `require'
    from /usr/lib/ruby/gems/1.8/gems/rspec-core-2.3.1/lib/rspec/core.rb:17
    from /usr/lib/ruby/gems/1.8/gems/activesupport-3.0.3/lib/active_support/dependencies.rb:239:in `require'
    from /usr/lib/ruby/gems/1.8/gems/activesupport-3.0.3/lib/active_support/dependencies.rb:239:in `require'
    from /usr/lib/ruby/gems/1.8/gems/activesupport-3.0.3/lib/active_support/dependencies.rb:225:in `load_dependency'
    from /usr/lib/ruby/gems/1.8/gems/activesupport-3.0.3/lib/active_support/dependencies.rb:596:in `new_constants_in'
    from /usr/lib/ruby/gems/1.8/gems/activesupport-3.0.3/lib/active_support/dependencies.rb:225:in `load_dependency'
    from /usr/lib/ruby/gems/1.8/gems/activesupport-3.0.3/lib/active_support/dependencies.rb:239:in `require'
    from /usr/lib/ruby/gems/1.8/gems/rspec-2.3.0/lib/rspec.rb:1
    from /usr/lib/ruby/gems/1.8/gems/bundler-1.0.7/lib/bundler/runtime.rb:64:in `require'
    from /usr/lib/ruby/gems/1.8/gems/bundler-1.0.7/lib/bundler/runtime.rb:64:in `require'
    from /usr/lib/ruby/gems/1.8/gems/bundler-1.0.7/lib/bundler/runtime.rb:62:in `each'
    from /usr/lib/ruby/gems/1.8/gems/bundler-1.0.7/lib/bundler/runtime.rb:62:in `require'
    from /usr/lib/ruby/gems/1.8/gems/bundler-1.0.7/lib/bundler/runtime.rb:51:in `each'
    from /usr/lib/ruby/gems/1.8/gems/bundler-1.0.7/lib/bundler/runtime.rb:51:in `require'
    from /usr/lib/ruby/gems/1.8/gems/bundler-1.0.7/lib/bundler.rb:112:in `require'
    from /root/company/project/config/application.rb:8
    from /usr/local/lib/site_ruby/1.8/rubygems/custom_require.rb:31:in `gem_original_require'
    from /usr/local/lib/site_ruby/1.8/rubygems/custom_require.rb:31:in `require'
    from /root/company/project/config/environment.rb:2
    from /usr/local/lib/site_ruby/1.8/rubygems/custom_require.rb:31:in `gem_original_require'
    from /usr/local/lib/site_ruby/1.8/rubygems/custom_require.rb:31:in `require'
    from /root/company/project/config.ru:3
    from /usr/lib/ruby/gems/1.8/gems/rack-1.2.1/lib/rack/builder.rb:46:in `instance_eval'
    from /usr/lib/ruby/开发者_Go百科gems/1.8/gems/rack-1.2.1/lib/rack/builder.rb:46:in `initialize'
    from /root/company/project/config.ru:1:in `new'
    from /root/company/project/config.ru:1

Look in your config files for a file path that includes a ~. Possibly you have a ~ in your Gemfile on a line that's somehow related to rspec. The trace seems to show that Bundler is failing to initialise rspec because there's a path with a tilde character that can't be expanded because there's no HOME environment variable when the application is started via thin. When you find it, replace the path with a fully qualified one.