Redmine SUB-URI and Apache configuration

While trying to setup Redmine in a sub-uri I run across an issue will trying to setup apache. Passenger would display the following error: No such file or directory – config/environment.rb while trying to access the Redmine webpage.

After trying a few suggestions on the issue I managed to get Redmine to work with the following configuration:

The passenger.load configuration file was the following (the paths will probably vary depending on the installation):

LoadModule passenger_module /opt/ruby-enterprise-1.8.7-2011.03/lib/ruby/gems/1.8/gems/passenger-3.0.9/ext/apache2/
PassengerRoot /opt/ruby-enterprise-1.8.7-2011.03/lib/ruby/gems/1.8/gems/passenger-3.0.9
PassengerRuby /opt/ruby-enterprise-1.8.7-2011.03/bin/ruby
PassengerDefaultUser www-data

In the Virtual Host configuration I added the following:

        PassengerAppRoot /usr/local/lib/redmine-1.2/
        RailsBaseURI /redmine
        RailsEnv production

PassengerAppRoot represents the path that redmine is installed.
RailsBasedURI represents the sub directory in the URL that represents Redmine eg.

(for this to work is also essential to have a symbolic link of the redmine-*.*/public inside the web root folder).

Also I changed ownership of the redmine-1.2 folder and the symlink redmine folder to the apache user/group (I am under the impression that it was necessary).