Server restart required after generate controller

Using development mode, the scenario is as follows:

ruby $GIT/rails/railties/bin/rails demo1 demo
cd demo
ln -s $GIT/rails vendor/rails

Now in one window:

rubys script/server

Wait for server to completely start, and wait several seconds more.

Now in a separate window, run:

ruby script/generate controller say hello

Wait several seconds, and go into your browser, and visit: http://localhost:3000/say/hello

What you will get is a message that no route matches. Restart your server, and instead you will get a "Find me in app/views/say/hello.html.erb".