500 Internal Server Error with Rails Production - ruby-on-rails

Question

I recently uploaded some new files to my production server (and overriding the old ones) and am now getting 500 Internal Server Error. The server is running phusion passenger (even though I am not getting that error message anymore) and in my local test environment everything seems to be working fine.
Here is the site: http://www.pandonews.com/
When I looked in my apache log i see this error:
[ pid=3106 thr=140057117177664 file=ext/apache2/Hooks.cpp:884 time=2013-09-01 17:37:24.84 ]: Unexpected error in mod_passenger: Cannot spawn application '/var/www/feedme': The spawn server died unexpectedly, and restarting it failed.
Backtrace:
in 'virtual Passenger::SessionPtr Passenger::ApplicationPool::Client::get(const Passenger::PoolOptions&)' (Client.h:742)
in 'Passenger::SessionPtr Hooks::getSession(const Passenger::PoolOptions&)' (Hooks.cpp:312)
in 'int Hooks::handleRequest(request_rec*)' (Hooks.cpp:585)
I have no idea what the problem is. It has been running fine up until now. I don't really know where to start in order to fix this. I tried running gem passenger install again but nothing happened.
Recent activities:
Installed pg gem (but removed it from gem file after deciding to stay with sqlite3 for now) the yml file should be ok...
Tried running bundle update on server and locally but it keeps hanging
Changed some javascript and css files...
Tried resetting the server with RAILS_ENV=production rake:db reset - no change!
EDIT:
when running rails s production i get the following error:
/home/otto/.rvm/gems/ruby-1.9.3-p392/gems/activesupport-3.2.7/lib/active_support/dependencies.rb:251:in `require': cannot load such file -- rack/handler/production (LoadError)
from /home/otto/.rvm/gems/ruby-1.9.3-p392/gems/activesupport-3.2.7/lib/active_support/dependencies.rb:251:in `block in require'
from /home/otto/.rvm/gems/ruby-1.9.3-p392/gems/activesupport-3.2.7/lib/active_support/dependencies.rb:236:in `load_dependency'
from /home/otto/.rvm/gems/ruby-1.9.3-p392/gems/activesupport-3.2.7/lib/active_support/dependencies.rb:251:in `require'
from /home/otto/.rvm/gems/ruby-1.9.3-p392/gems/rack-1.4.5/lib/rack/handler.rb:63:in `try_require'
from /home/otto/.rvm/gems/ruby-1.9.3-p392/gems/rack-1.4.5/lib/rack/handler.rb:16:in `get'
from /home/otto/.rvm/gems/ruby-1.9.3-p392/gems/rack-1.4.5/lib/rack/server.rb:272:in `server'
from /home/otto/.rvm/gems/ruby-1.9.3-p392/gems/railties-3.2.7/lib/rails/commands/server.rb:59:in `start'
from /home/otto/.rvm/gems/ruby-1.9.3-p392/gems/railties-3.2.7/lib/rails/commands.rb:55:in `block in <top (required)>'
from /home/otto/.rvm/gems/ruby-1.9.3-p392/gems/railties-3.2.7/lib/rails/commands.rb:50:in `tap'
from /home/otto/.rvm/gems/ruby-1.9.3-p392/gems/railties-3.2.7/lib/rails/commands.rb:50:in `<top (required)>'
from script/rails:6:in `require'
from script/rails:6:in `<main>'
EDIT2:
$ passenger-status
ERROR: Phusion Passenger doesn't seem to be running.
EDIT3:
Seems like it is running, still internal server error:
passenger start -a 0.0.0.0 -p 3000 -d -e production
=============== Phusion Passenger Standalone web server started ===============
PID file: /var/www/feedme/tmp/pids/passenger.3000.pid
Log file: /var/www/feedme/log/passenger.3000.log
Environment: production
Accessible via: http://0.0.0.0:3000/
Serving in the background as a daemon.
===============================================================================
otto#scraper:/var/www/feedme$ passenger status
Phusion Passenger Standalone is running on PID 18788, according to PID file /var/www/feedme/tmp/pids/passenger.3000.pid
otto#scraper:/var/www/feedme$

Answer 1

Did the following:
gem install passenger (no sudo or anything)
Find root: passenger-config –root
Give chmod to all from root until username folder: sudo chmod -R 777 /home/username/.rvm/gems/ruby-1.9.3-p392/gems/passenger-4.0.14 to every folder until /home/username/
passenger-install-apache2-module (without anything)
Take the code you are given paste it inside: /etc/apache2/httpd.conf
sudo service apache2 restart