Here is the error running bundle install vendor/gems on server:

Installing nokogiri (1.5.0) with native extensions
Gem::Installer::ExtensionBuildError: ERROR: Failed to build gem native extension.
    /home/dtt/.rvm/rubies/ruby-1.9.2-p290/bin/ruby extconf.rb
checking for libxml/parser.h… no
libxml2 is missing. please visit http://nokogiri.org/tutorials/installing_nokogiri.html for help with installing dependencies.
*** extconf.rb failed ***
Could not create Makefile due to some reason, probably lack of
necessary libraries and/or headers. Check the mkmf.log file for more
details. You may need configuration options.
Provided configuration options:
–with-opt-dir
–without-opt-dir
–with-opt-include
–without-opt-include=${opt-dir}/include
–with-opt-lib
–without-opt-lib=${opt-dir}/lib
–with-make-prog
–without-make-prog
–srcdir=.
–curdir
–ruby=/home/dtt/.rvm/rubies/ruby-1.9.2-p290/bin/ruby
–with-zlib-dir
–without-zlib-dir
–with-zlib-include
–without-zlib-include=${zlib-dir}/include
–with-zlib-lib
–without-zlib-lib=${zlib-dir}/lib
–with-iconv-dir
–without-iconv-dir
–with-iconv-include
–without-iconv-include=${iconv-dir}/include
–with-iconv-lib
–without-iconv-lib=${iconv-dir}/lib
–with-xml2-dir
–without-xml2-dir
–with-xml2-include
–without-xml2-include=${xml2-dir}/include
–with-xml2-lib
–without-xml2-lib=${xml2-dir}/lib
–with-xslt-dir
–without-xslt-dir
–with-xslt-include
–without-xslt-include=${xslt-dir}/include
–with-xslt-lib
–without-xslt-lib=${xslt-dir}/lib
Gem files will remain installed in /vol/www/emclab/releases/20111104001151/vendor/gems/ruby/1.9.1/gems/nokogiri-1.5.0 for inspection.
Results logged to /vol/www/emclab/releases/20111104001151/vendor/gems/ruby/1.9.1/gems/nokogiri-1.5.0/ext/nokogiri/gem_make.out
An error occured while installing nokogiri (1.5.0), and Bundler cannot continue.
Make sure that gem install nokogiri -v '1.5.0' succeeds before bundling.

You can skip this part. The error message is pretty much self explanatory, but the website requires a few more words explaining the code.

Any thoughts?

You need to have all the necessary libraries installed on your machine. When you installed RVM , it should have listed this for you. On the current version of rvm, you can run rvm requirements to see the exact list. Right now, that list is:

sudo apt-get install build-essential openssl libreadline6 libreadline6-dev curl git-core zlib1g zlib1g-dev libssl-dev libyaml-dev libsqlite3-0 libsqlite3-dev sqlite3 libxml2-dev libxslt-dev autoconf libc6-dev ncurses-dev automake libtool bison subversion