Errors on initial rake

I'm having the hardest time just getting set up. Any ideas?

/usr/local/bin/ruby -I"lib:test" "/usr/local/lib/ruby/gems/1.8/gems/rake-0.8.6/lib/rake/rake_test_loader.rb" "test/unit/helpers/projects_helper_test.rb" "test/unit/helpers/status_reports_helper_test.rb" "test/unit/project_test.rb" "test/unit/status_report_test.rb" "test/unit/user_test.rb"
Loaded suite /usr/local/lib/ruby/gems/1.8/gems/rake-0.8.6/lib/rake/rake_test_loader
Started
............F..
Finished in 0.39876 seconds.

1) Failure:
test_should_reset_password(UserTest) [/test/unit/user_test.rb:46]:
<#<user>> expected but was
<nil>.

15 tests, 28 assertions, 1 failures, 0 errors
/usr/local/bin/ruby -I"lib:test" "/usr/local/lib/ruby/gems/1.8/gems/rake-0.8.6/lib/rake/rake_test_loader.rb" "test/functional/projects_controller_test.rb" "test/functional/sessions_controller_test.rb" "test/functional/status_reports_controller_test.rb" "test/functional/users_controller_test.rb"
Loaded suite /usr/local/lib/ruby/gems/1.8/gems/rake-0.8.6/lib/rake/rake_test_loader
Started
..E..EE.......nil
..E..E..EE.....
Finished in 0.596748 seconds.

1) Error:
test_should_get_edit(ProjectsControllerTest):
ActiveRecord::RecordNotFound: Couldn't find Project with ID=953125641
/test/functional/projects_controller_test.rb:29:in `test_should_get_edit'

2) Error:
test_should_show_project(ProjectsControllerTest):
ActiveRecord::RecordNotFound: Couldn't find Project with ID=953125641
/test/functional/projects_controller_test.rb:24:in `test_should_show_project'

3) Error:
test_should_update_project(ProjectsControllerTest):
ActiveRecord::RecordNotFound: Couldn't find Project with ID=953125641
/test/functional/projects_controller_test.rb:34:in `test_should_update_project'

4) Error:
test_creation_of_status_report_with_data(StatusReportsControllerTest):
ActiveRecord::RecordNotFound: Couldn't find Project with ID=953125641
/test/functional/status_reports_controller_test.rb:49:in `test_creation_of_status_report_with_data'
/test/functional/status_reports_controller_test.rb:47:in `test_creation_of_status_report_with_data'

5) Error:
test_should_get_edit(StatusReportsControllerTest):
ActiveRecord::RecordNotFound: Couldn't find StatusReport with ID=953125641
/test/functional/status_reports_controller_test.rb:29:in `test_should_get_edit'

6) Error:
test_should_show_status_report(StatusReportsControllerTest):
ActiveRecord::RecordNotFound: Couldn't find StatusReport with ID=953125641
/test/functional/status_reports_controller_test.rb:24:in `test_should_show_status_report'

7) Error:
test_should_update_status_report(StatusReportsControllerTest):
ActiveRecord::RecordNotFound: Couldn't find StatusReport with ID=953125641
/test/functional/status_reports_controller_test.rb:34:in `test_should_update_status_report'

29 tests, 40 assertions, 0 failures, 7 errors
/usr/local/bin/ruby -I"lib:test" "/usr/local/lib/ruby/gems/1.8/gems/rake-0.8.6/lib/rake/rake_test_loader.rb"
Errors running test:units and test:functionals!</nil>