Redmine

Ive installed the latest from trunk(svn) yesterday and followed the blog tutorial to the dot:
http://redmineblog.com/articles/setup-redmine-to-send-email-using-gmail/

email.yml:

production:
  delivery_method: :smtp
  smtp_settings:
    address: smtp.gmail.com
    port: 587
    domain: smtp.gmail.com
    authentication: :login
    user_name: "user@gmail.com" 
    password: "password" 
    tls: true

P.S. I tried it with Google Apps count, it didnt work, so I tried with a regular gmail account to remove any apps issues. still didnt work.

This is the error thats displayed:

An error occurred while sending mail (wrong number of arguments (3 for 2))

When I enable debug logging and mail logging this is the only thing that i receive in the production.log

Sent mail to  <-----  BLANK, NO EMAIL ADDRESS HERE IN THE LOG

Date: Thu, 8 Oct 2009 15:34:39 -0700
From: testemail@that.I.specified
Bcc: admin@email.com
Subject: Redmine test
Mime-Version: 1.0
Content-Type: multipart/alternative; boundary=mimepart_4ace68ff21710_1897..fdbe990de788
Precedence: bulk
X-Mailer: Redmine
Auto-Submitted: auto-generated
X-Redmine-Site: My company name
X-Redmine-Host: redmine.mycompany.com

--mimepart_4ace68ff21710_1897..fdbe990de788
Content-Type: text/plain; charset=utf-8
Content-Transfer-Encoding: Quoted-printable
Content-Disposition: inline

............. <<<CONTINUES WITH HTML EMAIL

I couldnt get any other debug info from redmine. I verified that Im able to telnet to smtp.google.com 587 from my server so firewall is not an issue and I was very careful with formatting of email.yml.
Im out of ideas here and Ive already spent a day trying to get this working for my team.
Any help with fixing this or enabling me to gather more information of which arguments the error message refers to would be appreciated.

Note, Ive done the same on dreamhost with slightly earlier version couple weeks ago and it works fine.

Running on Apache2 Passenger/mod_rail
Here is my script/about info:

About your application's environment
Ruby version 1.8.7 (i486-linux)
RubyGems version 1.3.5
Rack version 1.0
Rails version 2.3.4
Active Record version 2.3.4
Active Resource version 2.3.4
Action Mailer version 2.3.4
Active Support version 2.3.4
Application root /xxx/xxx
Environment development < even though I explicitly specified production in Apache2 Passenger directive
Database adapter mysql
Database schema version 20090704172358

It was yesterdays SVN revision which is I believe 2904