No database file specified. Missing argument: database
I presume that the default should also contain a database key. This is also considered as a valid database configuraiton.
default: &default adapter: sqlite3 pool: 5 timeout: 5000
Refer: http://rails-bestpractices.com/posts/37-dry-your-database-yml
I wonder would it help if you added a database:
parameter to your default database? (just guessing)
default: &default adapter: sqlite3 pool: 5 timeout: 5000 database: xxx