ruby script/server error /config/initializers/siteman.rb:23:in `chdir': No such file or directory - project_folder/presents (Errno::ENOENT)

I am using ruby 1.9.3 rails 2.3.18 when I am running rails server by typing ruby script/server then got this error.... Please have a look for Error

Latitude-3540:/var/www/html/siteman$ ruby script/server

1. NOTE: Gem.source_index is deprecated, use Specification. It will be removed on or after 2011-11-01. Gem.source_index called from /var/www/html/siteman/vendor/rails/railties/lib/rails/gem_dependency.rb:21. config.gem: Unpacked gem ihunter-whatcounts-0.4.0 in vendor/gems has a mismatched specification file. Run 'rake gems:refresh_specs' to fix this. /var/www/html/siteman/vendor/rails/activesupport/lib/active_support/inflector.rb:3:in <top (required)>': iconv will be deprecated in the future, use String#encode instead. => Booting WEBrick => Rails 2.3.18 application starting on http://0.0.0.0:3000 config.load_paths is deprecated and removed in Rails 3, please use autoload_paths instead config.load_paths= is deprecated and removed in Rails 3, please use autoload_paths= instead [FSTR] Using Red Five FileStorage version 0.1 /var/www/html/siteman/config/initializers/siteman.rb:23:inchdir': No such file or directory - /var/www/html/siteman/presents (Errno::ENOENT) from /var/www/html/siteman/config/initializers/siteman.rb:23:in <top (required)>' from /var/www/html/siteman/vendor/rails/activesupport/lib/active_support/dependencies.rb:171:in load' from /var/www/html/siteman/vendor/rails/activesupport/lib/active_support/dependencies.rb:171:in block in load_with_new_constant_marking' from /var/www/html/siteman/vendor/rails/activesupport/lib/active_support/dependencies.rb:547:in new_constants_in' from /var/www/html/siteman/vendor/rails/activesupport/lib/active_support/dependencies.rb:171:in load_with_new_constant_marking' from /var/www/html/siteman/vendor/rails/railties/lib/initializer.rb:622:in block in load_application_initializers' from /var/www/html/siteman/vendor/rails/railties/lib/initializer.rb:621:in each' from /var/www/html/siteman/vendor/rails/railties/lib/initializer.rb:621:in load_application_initializers' from /var/www/html/siteman/vendor/rails/railties/lib/initializer.rb:176:in process' from /var/www/html/siteman/vendor/rails/railties/lib/initializer.rb:113:in run' from /var/www/html/siteman/config/environment.rb:9:in <top (required)>' from /var/www/html/siteman/vendor/rails/activesupport/lib/active_support/dependencies.rb:182:in require' from /var/www/html/siteman/vendor/rails/activesupport/lib/active_support/dependencies.rb:182:in block in require' from /var/www/html/siteman/vendor/rails/activesupport/lib/active_support/dependencies.rb:547:in new_constants_in' from /var/www/html/siteman/vendor/rails/activesupport/lib/active_support/dependencies.rb:182:in require' from /var/www/html/siteman/config.ru:2:inblock in ' from /var/www/html/siteman/vendor/bundle/ruby/1.9.1/gems/rack-1.1.6/lib/rack/builder.rb:46:in instance_eval' from /var/www/html/siteman/vendor/bundle/ruby/1.9.1/gems/rack-1.1.6/lib/rack/builder.rb:46:in initialize' from /var/www/html/siteman/config.ru:1:in new' from /var/www/html/siteman/config.ru:1:in' from /var/www/html/siteman/vendor/rails/railties/lib/commands/server.rb:78:in eval' from /var/www/html/siteman/vendor/rails/railties/lib/commands/server.rb:78:in ' from script/server:3:in require' from script/server:3:in'