Welcome to Cloud Jim, try to keep up
 
cp /var/lib/gems/1.8/gems/web-app-theme-0.8.0/spec/dummy/public/images/* app/assets/images/web-app-theme/ -r
 
ActionView::Template::Error (web_app_theme.css isn't precompiled):
config/environments/production.rb
config.assets.compile = true

Missing css file
<%= stylesheet_link_tag 'web-app-theme', 'web-app-theme/base', 'web-app-theme/themes/default/style'%>
<%= stylesheet_link_tag 'application' %>