The MonoRail project templates don't work in Visual Studio 2008. Therefore I've taken the template project and upgraded it to work in Visual Studio 2008. If you're new to MonoRail this is the template that is created when you have the MSI installer installed with Visual Studio 2005.
All References have been rebased to "~/lib" directory so that this solution is portable and does not require Castle libraries to be installed in the GAC