why can't I get my deployed Rails app to run in dev mode locally?

Question

I'm running Rails 2.3.2 on Ubuntu with passenger. In /config/environment.rb, I've set

ENV['RAILS_ENV'] ||= development

In the Apache config file, I've set

<VirtualHost *:80>
  ServerName localhost
  DocumentRoot /root/webapps/myapp/public
  RailsEnv development
  <Directory /root/webapps/myapp/public>
    AllowOverride all
    Options -MultiViews
  </Directory
</VirtualHost>

I'm mostly working in partials and views, so I just want to make a little change and refresh the page to see the change. So, based on another recommendation, I commented out the config.cache_classes = true int the /environments/production.rb file. Restarted apache several times after each thing I tried, nothing works.

So could there be a RAILS_ENV setting somewhere besides the config files? I tried doing grep -r 'RAILS_ENV' to look for it, but it seemed to just time out and never return, even after several minutes. But I'm a Linux newb.