Steven,

Your server is giving you an error instead of the data you expect. I don't 
have any experience with rails, but that is where you need to look for the 
solution. 
Perhaps you need to add some stuff to the request angular is, or there is 
something of in your rails config.
I can't solve this for you without access to your server, Usually it is 
something very simple, your just not aware off!

Regards
Sander

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