Debugging with Torquebox error: No such file or directory

I'm getting the following error when trying to debug using Torquebox.

Error running Development: myApp:
Failed to deploy Errno::ENOENT: No such      file or directory - /jboss/standalone/deployments/myApp-knob.yml
initialize      at org/jruby/RubyFile.java:334
...

Any ideas. It looked to me like a path issue. I added the following env variables but I'm still getting this error:
TORQUEBOX_HOME
JBOSS_HOME
JRUBY_HOME

Thanks,
John