I'm new to ROR and went through the O'Reily tutorial that used mySQL and was impressed how easy it was to build an App using it around managine recipes.

However when I tried to do anything with ROR and Salesforce I can't get anywhere.  Could someone help me understand what I'm doing wrong here?  I'm on Ruby version 1.8.2, and Rails version 1.1.0,  activesalesforce-0.4.8

Here is what I have done:

• I installed the activesalesforce gem and see it when I run "gem list --local"
• I created a new app "rails sfdc"
• I edited the environments.rb file and added "require_gem 'activesalesforce'"
• I edited the database.yml file and it now contains (I have tried several variations):

salesforce:
    adapter: activesalesforce
    url: https://www.salesforce.com/services/Soap/u/7.0
    username: xxx
    password: xxx

development:
    datbase: salesforce
    adapter: activesalesforce
    url: https://www.salesforce.com/services/Soap/u/7.0
    username: xxx
    password: xxx

test:
    adapter: activesalesforce
    url: https://www.salesforce.com/services/Soap/u/7.0
    username: xxx
    password: xxx
production:
    adapter: activesalesforce
    url: https://www.salesforce.com/services/Soap/u/7.0
    username: xxx

When I try to generate a model or controller I always get this message:

c:/ruby/lib/ruby/gems/1.8/gems/activerecord-1.14.0/lib/active_record/connection_
adapters/abstract/connection_specification.rb:194:in `establish_connection': dev
elopment database is not configured (ActiveRecord::AdapterNotSpecified)
        from c:/ruby/lib/ruby/gems/1.8/gems/activerecord-1.14.0/lib/active_recor
d/connection_adapters/abstract/connection_specification.rb:185:in `establish_con
nection'
        from c:/ruby/lib/ruby/gems/1.8/gems/rails-1.1.0/lib/initializer.rb:182:i
n `initialize_database'
        from c:/ruby/lib/ruby/gems/1.8/gems/rails-1.1.0/lib/initializer.rb:84:in
 `process'
        from c:/ruby/lib/ruby/gems/1.8/gems/rails-1.1.0/lib/initializer.rb:42:in
 `send'
        from c:/ruby/lib/ruby/gems/1.8/gems/rails-1.1.0/lib/initializer.rb:42:in
 `run'
        from ./script/../config/../config/environment.rb:11
        from c:/ruby/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:21:in `re
quire__'
        from c:/ruby/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:21:in `re
quire'
        from c:/ruby/lib/ruby/gems/1.8/gems/activesupport-1.3.0/lib/active_suppo
rt/dependencies.rb:136:in `require'
        from c:/ruby/lib/ruby/gems/1.8/gems/rails-1.1.0/lib/commands/generate.rb
:1
        from c:/ruby/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:21:in `re
quire__'
        from c:/ruby/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:21:in `re
quire'
        from c:/ruby/lib/ruby/gems/1.8/gems/activesupport-1.3.0/lib/active_suppo
rt/dependencies.rb:136:in `require'
        from script/generate:3

Any ideas?