ember-rails Ember Handlebars requires Handlebars version 2.0

I am trying to get a simple app runnning based off http://ift.tt/1z5srNf

I haven't even begun my app; all I have done so far is:

• generate using rails new


• rails g ember:bootstrap -n App --javascript-engine js


• rails g ember:install --ember


• rails g ember:install --ember-data

then set the root route to home, with the application.js.emblem as the ember page. I am getting this error:

 Uncaught Error: Assertion Failed: Ember Handlebars requires Handlebars version 2.0. Please see more details at http://ift.tt/1sWS3Lv.

Now, visiting the link in the error, the 'rough' directions are:

• Update Handlebars version to 2.X.


• Update template precompiler version to 1.9.0-alpha or later.

Here is my gem file ( I believe this is all thats related to ember:)

# Ember
gem 'ember-rails'
gem 'ember-source', '1.9.0.alpha'
gem 'emblem-rails'

So I believe I have the correct ember-source. Now, how do I update the handlebars version? I tried installing the handlebars-source gem (v2.0.0) but I got this error:

You have requested:
  handlebars-source = 2.0.0

The bundle currently has handlebars-source locked at 1.3.0.
Try running `bundle update handlebars-source`

Of course, following up, I tried the bundle update, and yet I got this error:

Bundler could not find compatible versions for gem "handlebars-source":
  In Gemfile:
    ember-source (= 1.9.0.alpha) ruby depends on
      handlebars-source (~> 1.0) ruby

    handlebars-source (2.0.0)

I suspect that all that needs to happen is for ember-source to depend on handlebars-source 2.0 but I have no idea how to do this.

If not this, then how can I update handlebars for my ember-rails app so that I can use ember?