more bluegost fcgi issues with rails 2.3.3 and 2.3.2
Here are the steps you need to take to resolve their mistake. Here is more details with a like to the ticket to hopefully help some people out! The problem is rack, not rails 2.3.3

You need to understand the command line, and a bit of rails for this...!

gem install rack
vim ~/ruby/gems/gems/rack-1.0.0/lib/rack/handler/fastcgi.rb
** Note - Depending on your configuration on bluehost you may find your gems in ~/.gem/ruby/1.8/gems, so replace ~/ruby/gems/gems/ with that

Comment out line 7
# alias _rack_read_without_buffer read

Last you need to update enviornment.rb
get your full path with
pwd
ENV['GEM_PATH'] = '/home3/radiolo1/ruby/gems:/usr/lib/ruby/gems/1.8/gems'
of course you need to replace /home3/radiolo1 with whatever your home path is, and if you are in the .gem directory it will look more like
ENV['GEM_PATH'] = '/home1/jibwacom/.gem/ruby/1.8:/usr/lib/ruby/gems/1.8/gems'
Which I had to do on another account