diff --git a/.gitignore b/.gitignore
index ea0d8bbba774651e63b99de448db036594dac8eb..3b922f29f743bf8c477ae3f70976be3a27eda38f 100644
--- a/.gitignore
+++ b/.gitignore
@@ -27,10 +27,6 @@ railties/guides/output
 *.rbc
 *.swp
 *.swo
-actionpack/bin
-activerecord/bin
+bin
 vendor/gems/
-*/vendor/gems/
 railties/tmp
-activerecord/vendor
-actionpack/vendor
diff --git a/Gemfile b/Gemfile
new file mode 100644
index 0000000000000000000000000000000000000000..ba55d96783be6e8beba0d1671d00e47251ace7f4
--- /dev/null
+++ b/Gemfile
@@ -0,0 +1,21 @@
+Gem.sources.each { |uri| source uri }
+
+gem "rails", "3.0.pre", :vendored_at => "railties"
+%w(
+  activesupport
+  activemodel
+  actionpack
+  actionmailer
+  activerecord
+  activeresource
+).each do |lib|
+  gem lib, '3.0.pre', :vendored_at => lib
+end
+gem "rack",          "1.0.1"
+gem "rack-mount",    :git => "git://github.com/josh/rack-mount.git"
+gem "rack-test",     "~> 0.5.0"
+gem "erubis",        "~> 2.6.0"
+gem "arel",          :git => "git://github.com/rails/arel.git"
+gem "mocha"
+gem "sqlite3-ruby"
+gem "RedCloth"
\ No newline at end of file
diff --git a/actionmailer/Gemfile b/actionmailer/Gemfile
deleted file mode 100644
index 430b32e8ca28946726e8cdb90b868aa5a769f728..0000000000000000000000000000000000000000
--- a/actionmailer/Gemfile
+++ /dev/null
@@ -1,10 +0,0 @@
-Gem.sources.each { |uri| source uri }
-sibling = "#{File.dirname(__FILE__)}/.."
-
-gem "activesupport", "3.0.pre", :vendored_at => "#{sibling}/activesupport"
-gem "activemodel", "3.0.pre", :vendored_at => "#{sibling}/activemodel"
-gem "actionpack", "3.0.pre", :vendored_at => "#{sibling}/actionpack"
-gem "rack-mount", :git => "git://github.com/josh/rack-mount.git"
-gem "mocha"
-
-#disable_system_gems
diff --git a/actionmailer/test/abstract_unit.rb b/actionmailer/test/abstract_unit.rb
index 78436239969994593b5d1f2faec022da0b181901..fcbaa9e186e969d0ff80cac0c92d3164aa687ec6 100644
--- a/actionmailer/test/abstract_unit.rb
+++ b/actionmailer/test/abstract_unit.rb
@@ -1,15 +1,15 @@
-bundled = "#{File.dirname(__FILE__)}/../vendor/gems/environment"
-if File.exist?("#{bundled}.rb")
-  require bundled
-else
-  $:.unshift "#{File.dirname(__FILE__)}/../../activesupport/lib"
-  $:.unshift "#{File.dirname(__FILE__)}/../../actionpack/lib"
+root = File.expand_path('../../..', __FILE__)
+begin
+  require "#{root}/vendor/gems/environment"
+rescue LoadError
+  $:.unshift("#{root}/activesupport/lib")
+  $:.unshift("#{root}/actionpack/lib")
+  $:.unshift("#{root}/actionmailer/lib")
 end
 
 require 'rubygems'
 require 'test/unit'
 
-$:.unshift "#{File.dirname(__FILE__)}/../lib"
 require 'action_mailer'
 require 'action_mailer/test_case'
 
diff --git a/actionpack/Gemfile b/actionpack/Gemfile
deleted file mode 100644
index af95766608cf6977c4ff73d4c6e8525cdce8bad0..0000000000000000000000000000000000000000
--- a/actionpack/Gemfile
+++ /dev/null
@@ -1,18 +0,0 @@
-rails_root = Pathname.new(File.dirname(__FILE__)).join("..")
-
-Gem.sources.each { |uri| source uri }
-
-gem "rack", "1.0.1", :git => "git://github.com/rails/rack.git", :branch => "rack-1.0"
-gem "rack-mount", :git => "git://github.com/josh/rack-mount.git"
-gem "rack-test", "~> 0.5.0"
-gem "activesupport", "3.0.pre", :vendored_at => rails_root.join("activesupport")
-gem "activemodel", "3.0.pre", :vendored_at => rails_root.join("activemodel")
-gem "arel", :git => "git://github.com/rails/arel.git"
-gem "activerecord", "3.0.pre", :vendored_at => rails_root.join("activerecord")
-gem "erubis", "~> 2.6.0"
-
-gem "mocha"
-gem "sqlite3-ruby"
-gem "RedCloth"
-
-disable_system_gems
diff --git a/actionpack/test/abstract_unit.rb b/actionpack/test/abstract_unit.rb
index f7a1564f907a6f1e3c28f610966db5691e38c0e9..05b15d38ee0fe8e5c054ea2d6888864401cf9be8 100644
--- a/actionpack/test/abstract_unit.rb
+++ b/actionpack/test/abstract_unit.rb
@@ -1,13 +1,12 @@
-bundled = "#{File.dirname(__FILE__)}/../vendor/gems/environment"
-if File.exist?("#{bundled}.rb")
-  require bundled
-else
-  $:.unshift "#{File.dirname(__FILE__)}/../../activesupport/lib"
-  $:.unshift "#{File.dirname(__FILE__)}/../../activemodel/lib"
+root = File.expand_path('../../..', __FILE__)
+begin
+  require "#{root}/vendor/gems/environment"
+rescue LoadError
+  $:.unshift "#{root}/activesupport/lib"
+  $:.unshift "#{root}/activemodel/lib"
+  $:.unshift "#{root}/lib"
 end
 
-$:.unshift(File.dirname(__FILE__) + '/../lib')
-
 $:.unshift(File.dirname(__FILE__) + '/lib')
 $:.unshift(File.dirname(__FILE__) + '/fixtures/helpers')
 $:.unshift(File.dirname(__FILE__) + '/fixtures/alternate_helpers')
diff --git a/activemodel/Gemfile b/activemodel/Gemfile
deleted file mode 100644
index a192fdaf829a84d40b5fe63fba3f475466d06a3c..0000000000000000000000000000000000000000
--- a/activemodel/Gemfile
+++ /dev/null
@@ -1,12 +0,0 @@
-rails_root = Pathname.new(File.dirname(__FILE__)).join("..")
-
-Gem.sources.each { |uri| source uri }
-
-gem "activesupport", "3.0.pre", :vendored_at => rails_root.join("activesupport")
-gem "arel", :git => "git://github.com/rails/arel.git"
-
-only :test do
-  gem "sqlite3-ruby"
-end
-
-disable_system_gems
diff --git a/activemodel/test/cases/helper.rb b/activemodel/test/cases/helper.rb
index e54c85938b83e64fa9488e752cd5685419706a20..49783c27357f3d64a96dc1ac0a94a6a6d8bbf2f9 100644
--- a/activemodel/test/cases/helper.rb
+++ b/activemodel/test/cases/helper.rb
@@ -1,13 +1,12 @@
-bundled = "#{File.dirname(__FILE__)}/../vendor/gems/environment"
-if File.exist?("#{bundled}.rb")
-  require bundled
-else
-  $:.unshift(File.dirname(__FILE__) + '/../../lib')
-  $:.unshift(File.dirname(__FILE__) + '/../../../activesupport/lib')
+root = File.expand_path('../../../..', __FILE__)
+begin
+  require "#{root}/vendor/gems/environment"
+rescue LoadError
+  $:.unshift("#{root}/activesupport/lib")
+  $:.unshift("#{root}/activemodel/lib")
 end
 
 require 'config'
-
 require 'active_model'
 
 # Show backtraces for deprecated behavior for quicker cleanup.
diff --git a/activerecord/Gemfile b/activerecord/Gemfile
deleted file mode 100644
index 3201e65f02563f40ef98c1f1d6da575e5e6b8b30..0000000000000000000000000000000000000000
--- a/activerecord/Gemfile
+++ /dev/null
@@ -1,8 +0,0 @@
-Gem.sources.each { |uri| source uri }
-sibling = "#{File.dirname(__FILE__)}/.."
-
-gem "activesupport", "3.0.pre", :vendored_at => "#{sibling}/activesupport"
-gem "activemodel", "3.0.pre", :vendored_at => "#{sibling}/activemodel"
-gem "arel", :git => "git://github.com/rails/arel.git"
-
-gem "mocha"
diff --git a/activerecord/test/cases/helper.rb b/activerecord/test/cases/helper.rb
index 63014c0297991fa3ffb032948cbf8826b0da7c03..871cfa646880c9b0af8905f038e82ed516024f38 100644
--- a/activerecord/test/cases/helper.rb
+++ b/activerecord/test/cases/helper.rb
@@ -1,10 +1,9 @@
-$:.unshift(File.dirname(__FILE__) + '/../../lib')
-
-bundled = "#{File.dirname(__FILE__)}/../../vendor/gems/environment"
-if File.exist?("#{bundled}.rb")
-  require bundled
-else
-  $:.unshift(File.dirname(__FILE__) + '/../../../activesupport/lib')
+root = File.expand_path('../../../..', __FILE__)
+begin
+  require "#{root}/vendor/gems/environment"
+rescue LoadError
+  $:.unshift("#{root}/activesupport/lib")
+  $:.unshift("#{root}/activerecord/lib")
 end
 
 require 'config'
diff --git a/activeresource/test/abstract_unit.rb b/activeresource/test/abstract_unit.rb
index 6a33040243954ed3c9e0874c593eceb460f19061..ee12f785b5cd49a4332a13926698af05a751aa2a 100644
--- a/activeresource/test/abstract_unit.rb
+++ b/activeresource/test/abstract_unit.rb
@@ -1,9 +1,15 @@
+root = File.expand_path('../../..', __FILE__)
+begin
+  require "#{root}/vendor/gems/environment"
+rescue LoadError
+  $:.unshift("#{root}/activesupport/lib")
+  $:.unshift("#{root}/activeresource/lib")
+end
+
 require 'rubygems'
 require 'test/unit'
 require 'active_support'
 require 'active_support/test_case'
-
-$:.unshift "#{File.dirname(__FILE__)}/../lib"
 require 'active_resource'
 
 $:.unshift "#{File.dirname(__FILE__)}/../test"
diff --git a/activesupport/lib/active_support/testing/isolation.rb b/activesupport/lib/active_support/testing/isolation.rb
index 8f7d1c29a9a7de58b35bf1874098501b36ea79c1..c75b59c284e77dd91dac30196b145bf54ec23e6b 100644
--- a/activesupport/lib/active_support/testing/isolation.rb
+++ b/activesupport/lib/active_support/testing/isolation.rb
@@ -1,5 +1,3 @@
-require "active_support/core_ext/load_error"
-
 module ActiveSupport
   module Testing
     class ProxyTestResult
diff --git a/activesupport/lib/active_support/vendor.rb b/activesupport/lib/active_support/vendor.rb
index 9f464c82465ef890f1b8391e2dd0a714ca27a553..0f9b0c7554d3b4574bdee29bd149160a7776a51e 100644
--- a/activesupport/lib/active_support/vendor.rb
+++ b/activesupport/lib/active_support/vendor.rb
@@ -1,3 +1,5 @@
+require 'pathname'
+
 def ActiveSupport.requirable?(file)
   $LOAD_PATH.any? { |p| Dir.glob("#{p}/#{file}.*").any? }
 end
@@ -10,7 +12,8 @@ def ActiveSupport.requirable?(file)
       gem lib, "~> #{version}"
       # Use the vendored lib if the gem's missing or we aren't using RubyGems.
     rescue LoadError, NoMethodError
-      $LOAD_PATH.unshift File.expand_path("#{File.dirname(__FILE__)}/vendor/#{lib}-#{version}/lib")
+      # There could be symlinks
+      $LOAD_PATH.unshift Pathname.new(__FILE__).dirname.join("vendor/#{lib}-#{version}/lib").realpath.to_s
     end
   end
 end
diff --git a/activesupport/test/abstract_unit.rb b/activesupport/test/abstract_unit.rb
index af9656615cbd91f5959a3668fc6b541b8e7e56dd..f390c66838cccf688196a0ce9bbf1b7fd1c59144 100644
--- a/activesupport/test/abstract_unit.rb
+++ b/activesupport/test/abstract_unit.rb
@@ -1,4 +1,12 @@
 ORIG_ARGV = ARGV.dup
+root = File.expand_path('../../..', __FILE__)
+begin
+  require "#{root}/vendor/gems/environment"
+rescue LoadError
+  $:.unshift("#{root}/activesupport/lib")
+  $:.unshift("#{root}/activerecord/lib")
+end
+
 
 require 'test/unit'
 
@@ -11,7 +19,6 @@
 end
 
 ENV['NO_RELOAD'] = '1'
-$:.unshift "#{File.dirname(__FILE__)}/../lib"
 require 'active_support'
 require 'active_support/test_case'
 
diff --git a/railties/Gemfile b/railties/Gemfile
deleted file mode 100644
index c441d69ded8c3f8f3478798052395dfb21fdc887..0000000000000000000000000000000000000000
--- a/railties/Gemfile
+++ /dev/null
@@ -1,13 +0,0 @@
-Gem.sources.each { |uri| source uri }
-sibling = "#{File.dirname(__FILE__)}/.."
-
-gem "mocha"
-
-gem "arel", :git => "git://github.com/rails/arel.git"
-gem "rack", "1.0.1", :git => "git://github.com/rails/rack.git", :branch => "rack-1.0"
-gem "rack-mount", :git => "git://github.com/josh/rack-mount.git"
-gem "rack-test", "~> 0.5.0"
-
-%w(activesupport activemodel actionpack actionmailer activerecord activeresource).each do |lib|
-  gem lib, '3.0.pre', :vendored_at => "#{sibling}/#{lib}"
-end
diff --git a/railties/test/abstract_unit.rb b/railties/test/abstract_unit.rb
index 7977b45a572e9bbcbe01ea544e9f058686efd5eb..47013d7797b6ede20cb158c4137e7ec6a33fbe48 100644
--- a/railties/test/abstract_unit.rb
+++ b/railties/test/abstract_unit.rb
@@ -1,16 +1,15 @@
 ORIG_ARGV = ARGV.dup
 
-bundled = "#{File.dirname(__FILE__)}/../vendor/gems/environment"
-if File.exist?("#{bundled}.rb")
-  require bundled
-else
-  %w(activesupport activemodel activerecord actionpack actionmailer activeresource).each do |lib|
-    $LOAD_PATH.unshift "#{File.dirname(__FILE__)}/../../#{lib}/lib"
+root = File.expand_path('../../..', __FILE__)
+begin
+  require "#{root}/vendor/gems/environment"
+rescue LoadError
+  %w(activesupport activemodel activerecord actionpack actionmailer activeresource railties).each do |lib|
+    $:.unshift "#{root}/#{lib}/lib"
   end
 end
 
-$:.unshift File.dirname(__FILE__) + "/../lib"
-$:.unshift File.dirname(__FILE__) + "/../builtin/rails_info"
+$:.unshift "#{root}/railties/builtin/rails_info"
 
 require 'stringio'
 require 'test/unit'
diff --git a/railties/test/application/initializer_test.rb b/railties/test/application/initializer_test.rb
index f42954079bf56f6b78d7c95006eed41f43038766..719520bf68f40b8ab59dd6de8a97b476d9cdf6f8 100644
--- a/railties/test/application/initializer_test.rb
+++ b/railties/test/application/initializer_test.rb
@@ -82,26 +82,6 @@ module Zoo::ReptileHouse ; end
       end
     end
 
-    test "action_pack is added to the load path if action_controller is required" do
-      Rails::Initializer.run do |config|
-        config.root = app_path
-        config.frameworks = [:action_controller]
-      end
-      Rails.initialize!
-
-      assert $:.include?("#{framework_path}/actionpack/lib")
-    end
-
-    test "action_pack is added to the load path if action_view is required" do
-      Rails::Initializer.run do |config|
-        config.root = app_path
-        config.frameworks = [:action_view]
-      end
-      Rails.initialize!
-
-      assert $:.include?("#{framework_path}/actionpack/lib")
-    end
-
     test "after_initialize block works correctly" do
       Rails::Initializer.run do |config|
         config.root = app_path
diff --git a/railties/test/isolation/abstract_unit.rb b/railties/test/isolation/abstract_unit.rb
index 557292e7d3968766a2ff1a9a26f7d09761c5b0e1..11cabb2c0b13b916027294a53860510d94b57eb0 100644
--- a/railties/test/isolation/abstract_unit.rb
+++ b/railties/test/isolation/abstract_unit.rb
@@ -6,7 +6,6 @@
 #
 # It is also good to know what is the bare minimum to get
 # Rails booted up.
-
 require 'fileutils'
 
 # TODO: Remove rubygems when possible
@@ -82,6 +81,7 @@ module Generation
     def build_app(options = {})
       FileUtils.rm_rf(app_path)
       FileUtils.cp_r(tmp_path('app_template'), app_path)
+      FileUtils.ln_s(RAILS_FRAMEWORK_ROOT, app_path('vendor/rails'))
 
       # Delete the initializers unless requested
       unless options[:initializers]
@@ -114,13 +114,10 @@ def controller(name, contents)
     end
 
     def boot_rails
-      bundled = "#{File.dirname(__FILE__)}/../../vendor/gems/environment"
-      if File.exist?("#{bundled}.rb")
-        require bundled
-        %w(railties railties/lib).each do |path|
-          $LOAD_PATH.unshift File.expand_path("../../../../#{path}", __FILE__)
-        end
-      else
+      root = File.expand_path('../../../..', __FILE__)
+      begin
+        require "#{root}/vendor/gems/environment"
+      rescue LoadError
         %w(
           actionmailer/lib
           actionpack/lib
@@ -131,8 +128,7 @@ def boot_rails
           railties/lib
           railties
         ).reverse_each do |path|
-          path = File.expand_path("../../../../#{path}", __FILE__)
-          $:.unshift(path)
+          $:.unshift "#{root}/#{path}"
         end
       end
     end
@@ -155,5 +151,6 @@ class Test::Unit::TestCase
   end
 
   FileUtils.mkdir(tmp_path)
-  `#{Gem.ruby} #{RAILS_FRAMEWORK_ROOT}/railties/bin/rails #{tmp_path('app_template')}`
+  root = File.expand_path('../../../..', __FILE__)
+  `#{Gem.ruby} -r #{root}/vendor/gems/environment #{RAILS_FRAMEWORK_ROOT}/railties/bin/rails #{tmp_path('app_template')}`
 end