Rails app Hangs and Ruby uses 100% CPU

I have an apache2 server running Phusion Passenger. On this machine I have two virtual hosts setup each look like this (path's are different for the 2nd virtualhost…but other directives are the same)

ServerName beta.mysite.us
DocumentRoot "/var/www/beta/mysite/public"

<Directory "/var/www/beta/mysite/public">
    RewriteEngine on
    AllowOverride All
    Options FollowSymLinks
</Directory>
# http://www.modrails.com/documentation/Users guide.html
PassengerAppRoot "/var/www/beta/mysite"
RailsEnv development
PassengerMaxPoolSize 6
PassengerDefaultUser mysite
# PassengerHighPerformance does come at a trade off of lack of support for mod_rewrite
PassengerHighPerformance off
RailsSpawnMethod conservative
RailsFrameworkSpawnerIdleTime 0
RailsAppSpawnerIdleTime 0
PassengerPoolIdleTime 300

ErrorLog "/var/log/httpd/mysite-beta-error_log"
CustomLog "/var/log/httpd/mysite-beta-access_log" common

Apache starts fine. I can go to one of the virtualhosts and it will load Rails and work. When I go to the second virtualhost, a ruby process spawns ("Rails: /var/www/mysite/current" according to ps awuxf) and uses 100% CPU. This process never exits. At this point neither virtualhost is responsive. If I kill the the offending ruby process, another ruby process replaces it and uses 100% cpu. If I kill these processes about 5-6 times, then both virtualhosts respond but they, are somehow, running the same Rails app?!

I have another virtualhost on this machine that is not setup with phusion passenger..This one never exhibits any problems.

Any help / ideas would be much appreciated!