This post explains what you can do to fix this error. We'll upgrade to the latest Vim. Because the error is caused by an old version of Vim and rails.vim, you need to update it. You can read about it in this thread. That was my starting point to find the fix.
1) Download and install the latest version of Vim
svn co https://vim.svn.sourceforge.net/svnroot/vim/vim7
sudo make install
2) Install all the plugins and scripts again
3) If you use haml, when I downloaded the latest version today of the haml syntax script, I had some illegal carriage return errors. I had to open haml.vim then save it via