Undefined Local Variable Routing Error or `with 'Method for ApplicationController: Class

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I'm completely new to rails and I can't figure out why I'm getting this error:

undefined local variable or method `with' for ApplicationController:Class

routing:

root 'home#index'

controller:

class HomeController < ApplicationController

  def new
  end

  def index
  end

end

app trace:

app/controllers/application_controller.rb:4:in `<class:ApplicationController>'
app/controllers/application_controller.rb:1:in `<top (required)>'
app/controllers/home_controller.rb:1:in `<top (required)>'

I've updated some models and rspec code to test model validation, but other than that I've created no other controllers/view/routes, etc.

Note: ruby 2.0.0, rails 4.0.0

application controller:

class ApplicationController < ActionController::Base
  # Prevent CSRF attacks by raising an exception.
  # For APIs, you may want to use :null_session instead.
  protect_from_forgery with::exception
end

Maybe it's some gem that's freaking out?

Gemfile:

source 'https://rubygems.org'
ruby '2.0.0'

# See https://github.com/sstephenson/execjs#readme for more supported runtimes
# gem 'therubyracer', platforms: :ruby

gem 'rails', '4.0.0'

group :development do
  gem 'sqlite3', '1.3.7'
  gem 'rspec-rails', '2.14.0'
  gem 'guard-rspec', '3.0.2'
  gem 'guard-spork', '1.5.1'
  gem 'factory_girl', '4.2.0'
  gem 'factory_girl_rails', '4.2.1'
end
gem 'mysql', '2.9.1'
gem 'mysql2', '0.3.13'

gem 'sass-rails', '4.0.0'
gem 'uglifier', '2.1.1'
gem 'coffee-rails', '4.0.0'
gem 'jquery-rails', '2.2.1'
gem 'turbolinks', '1.1.1'
gem 'jbuilder', '1.2'

group :test do
  gem 'email_spec', '1.5.0'
  #gem 'selenium-webdriver', '2.0.0'
  #gem 'capybara', '2.1.0'
end

group :doc do
  gem 'sdoc', '0.3.20', require: false
end


Looks like you needs a space on line 4 there.

so

protect_from_forgery with::exception

becomes:

protect_from_forgery with: :exception

The reason being that protect_from_forgery is a method that expects a hash as its only argument.