Installing redmine on ubuntu 10.10

I ditched my attempts to install redmine on a CentOS machine and instead wiped it and installed Ubuntu 10.10 on it as this seemed to work in a lot of attempts I've seen online.

Not for me though..

I get what looks like a compilation error when i go to (http to it's ip) the machine (which probably means that apache2 is working as it should?). Look at the attached error message for more info.

Does anyone know where to start with this one?

These are the possible causes:

    *
      There may be a syntax error in the application's code. Please check for such errors and fix them.
    *
      A required library may not installed. Please install all libraries that this application requires.
    *
      The application may not be properly configured. Please check whether all configuration files are written correctly, fix any incorrect configurations, and restart this application.
    *
      A service that the application relies on (such as the database server or the Ferret search engine server) may not have been started. Please start that service.

Further information about the error may have been written to the application's log file. Please check it in order to analyse the problem.

Error message:
    syntax error on line 76, col 0: `production:'
Exception class:
    ArgumentError
Application root:
    /var/www/redmine 
Backtrace:
    #   File    Line    Location
    0   /usr/lib/ruby/1.8/yaml.rb   133     in `load'
    1   /usr/lib/ruby/1.8/yaml.rb   133     in `load'
    2   /usr/lib/ruby/1.8/yaml.rb   144     in `load_file'
    3   /usr/lib/ruby/1.8/yaml.rb   143     in `open'
    4   /usr/lib/ruby/1.8/yaml.rb   143     in `load_file'
    5   /var/www/redmine/config/initializers/40-email.rb    6   
    6   /var/lib/gems/1.8/gems/activesupport-2.3.5/lib/active_support/dependencies.rb   147     in `load_without_new_constant_marking'
    7   /var/lib/gems/1.8/gems/activesupport-2.3.5/lib/active_support/dependencies.rb   147     in `load'
    8   /var/lib/gems/1.8/gems/rails-2.3.5/lib/initializer.rb   622     in `load_application_initializers'
    9   /var/lib/gems/1.8/gems/rails-2.3.5/lib/initializer.rb   621     in `each'
    10  /var/lib/gems/1.8/gems/rails-2.3.5/lib/initializer.rb   621     in `load_application_initializers'
    11  /var/lib/gems/1.8/gems/rails-2.3.5/lib/initializer.rb   176     in `process'
    12  /var/lib/gems/1.8/gems/rails-2.3.5/lib/initializer.rb   113     in `send'
    13  /var/lib/gems/1.8/gems/rails-2.3.5/lib/initializer.rb   113     in `run'
    14  /var/www/redmine/config/environment.rb  20  
    15  /usr/lib/ruby/1.8/rubygems/custom_require.rb    31  in `gem_original_require'
    16  /usr/lib/ruby/1.8/rubygems/custom_require.rb    31  in `require'
    17  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/classic_rails/application_spawner.rb   222     in `preload_application'
    18  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/classic_rails/application_spawner.rb   181     in `initialize_server'
    19  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/utils.rb   564     in `report_app_init_status'
    20  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/classic_rails/application_spawner.rb   174     in `initialize_server'
    21  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/abstract_server.rb     204     in `start_synchronously'
    22  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/abstract_server.rb     180     in `start'
    23  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/classic_rails/application_spawner.rb   149     in `start'
    24  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/spawn_manager.rb   219     in `spawn_rails_application'
    25  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/abstract_server_collection.rb  132     in `lookup_or_add'
    26  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/spawn_manager.rb   214     in `spawn_rails_application'
    27  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/abstract_server_collection.rb  82  in `synchronize'
    28  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/abstract_server_collection.rb  79  in `synchronize'
    29  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/spawn_manager.rb   213     in `spawn_rails_application'
    30  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/spawn_manager.rb   132     in `spawn_application'
    31  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/spawn_manager.rb   275     in `handle_spawn_application'
    32  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/abstract_server.rb     357     in `__send__'
    33  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/abstract_server.rb     357     in `server_main_loop'
    34  /var/lib/gems/1.8/gems/passenger-3.0.0/lib/phusion_passenger/abstract_server.rb     206     in `start_synchronously'
    35  /var/lib/gems/1.8/gems/passenger-3.0.0/helper-scripts/passenger-spawn-server    99  

Just to be clear; I'm trying to install redmine on ubuntu 10.10. Apache2 is running as web server and i've got Ruby 1.8.7 and Rails 2.3.5 installed as redmine needs that version.

EDIT:
email.yml:

 production:
   delivery_method: :smtp
   smtp_settings:
     tls: true
     address: "smtp.googlemail.com"
     port: 587
     domain: "domain.com"
     authentication: :plain
     user_name: "noreply@domain.com"
     password: xxxxxxx

I used no quotes on the password. Everything else in email.yml is commented out with #