Updated Rails to the latest version, 3.2.11 and did a few cleanups. 

* updated Cucumber and it's dependencies
* removed unused gems email-spec and rspec-rails
* now using the thin web server in development as it starts and serves pages faster
* removed auto-generated but unimplemented tests (test "the truth" and friends)
* moved all factories to test/factories/

The cucumber features still run :-)