rails / erb bug or feature

Question

just transfered an old rails application (1.1.6) to a new host providing a passenger/enterprise ruby environment.

one of the programmers used ruby tags to comment html content and this seems to cause some trouble on the new host. an example:

<div>
<% collection.do_domething %>
...
<% end %> <% # finished showing content %>
</div>
<div>
<% %>
</div>

in this example the comment "finished showing content" would prevent the following closing and opening div to be rendered.

is this behavior intended or a bug?