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The bundled Depot sample app was originally written for Rails 1.2 and hence uses the paginate method that was removed in Rails 2. Providing the classic_pagination plugin with the app would fix this.
Upgrading the sample app to the one that comes with the 3rd edition will hopefully fix this.
Need to think about whether we want to keep the sample app at all if there won't be an upgraded version for Rails 3. Having a sample app for Rails 1.2 practices with Rails 3 being the current version seems a bit silly.