For some reason launchy fails when growl is installed. Without growl, everything seems to be fine. I have no idea how or why that would interfere.
My original gist can be found here
I am using this with rvm and ruby 1.9.2-p180.
To try without growl run (make sure you also run gem uninstall growl
first):
bundle install
spork cuc
cucumber features
To break it - just uncomment the growl line from the Gemfile and re-run the previous commands.