For now, ensure your Gemfile is using the edge version:
gem 'ember-rails', :git => 'git://github.com/emberjs/ember-rails.git'
gem 'ember-source', '1.0.0.rc5'
gem 'handlebars-source', '1.0.0.rc4'
A new version of the gem should be released to resolve the issue soon. This fixed the problem for me.