Updated Rails version for security fix and limited new gems that breaks tests

For security bug details see https://groups.google.com/forum/#!topic/rubyonrails-security/61bkgvnSGTQ/discussion

I think a few cucumber scenarios still break on 1.8, but this was the best I could figure out.  Also, there was one Edit User scenario that was breaking on 1.9, but then it stopped breaking without any changes required.