The reason you are seeing this error is because bundler is not able to find the activesupport gem. Most likely you have installed Rails 3.2.8 locally and bundler is searching the system gem and failing to find it.
You should be able to resolve this with a bundle install --deployment
.
I would make sure to set your environment variables first before running it and make sure they are correct.
gem env
will show what they are currently set to.
export GEM_PATH=/usr/lib/ruby/gems/1.8
export GEM_HOME=~/.gems
export PATH=~/.gems/bin:/usr/lib/ruby/gems/1.8/bin:$PATH
bundle exec rails console
should also help let you know whats failing.