Passenger: An error occurred while starting up the preloader - ruby-on-rails

Question

I've tried what was recommended here: Passenger: internal server error , but found no references to STDOUT in config.ru
I'm on ruby-2.0.0-p247 and passenger (4.0.17)
Console output after attempting to load page:
[ 2013-09-16 14:34:07.3648 4197/b72beb40 Pool2/Spawner.h:738 ]: [App 4435 stdout]
Connecting to database specified by database.yml
[ 2013-09-16 14:35:37.4570 4197/b72beb40 Pool2/Implementation.cpp:849 ]: Could not spawn process for group /media/sf_John/product#default: An error occurred while starting up the preloader: it did not write a startup response in time.
in 'void Passenger::ApplicationPool2::SmartSpawner::throwPreloaderSpawnException(const std::string&, Passenger::SpawnException::ErrorKind, boost::shared_ptr&, const boost::shared_ptr&)' (SmartSpawner.h:150)
in 'std::string Passenger::ApplicationPool2::SmartSpawner::negotiatePreloaderStartup(Passenger::ApplicationPool2::SmartSpawner::StartupDetails&)' (SmartSpawner.h:558)
in 'void Passenger::ApplicationPool2::SmartSpawner::startPreloader()' (SmartSpawner.h:206)
in 'virtual Passenger::ApplicationPool2::ProcessPtr Passenger::ApplicationPool2::SmartSpawner::spawn(const Passenger::ApplicationPool2::Options&)' (SmartSpawner.h:744)
in 'void Passenger::ApplicationPool2::Group::spawnThreadRealMain(const Passenger::ApplicationPool2::SpawnerPtr&, const Passenger::ApplicationPool2::Options&, unsigned int)' (Implementation.cpp:782)
[ 2013-09-16 14:35:37.4578 4197/b60fdb40 agents/HelperAgent/RequestHandler.h:1952 ]: [Client 20] Cannot checkout session. An error occurred while starting up the preloader: it did not write a startup response in time.
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Answer 1

For me, it works
cd <usr name>
rails new myapp
sudo bundle install
mkdir /home/<user name>/myapp
chmod 701 /home/myapp
chmod -R 705 /home/<user name>/myapp
chgrp -R www-data /home/<user_name>/myapp
chown -R <user_name> /home/<user_name>