Update Rails to 3.2.12 for security
Updates to ALL THE GEMS
Some test seed data to help get into development

A developer can run `bundle exec rake db:seed` and get a test user, with
a project and a couple of todos. This will allow them to sign in and
start hacking with the minimum of fuss. Also it will remind them that
Ada Lovelace was awesome.
Opps, passwords didn't match