I have updated my auth_with_roles app to use rails 3.0.7. You can find the code at https://github.com/johnivanoff/auth_with_roles/tree/rails_3_0_7
I solved error for undefined method `to_key' for # with this
http://tech.gregorymazurek.com/2011/01/05/authlogic-undefined-method-to_key/
Have fun.