cannot load such file — bundler/setup (LoadError)

It could be that there was a previous Ruby env installed on your system prior to your installation of 2.0? This might have had an existing GEM_PATH that lead to the /1.8 directory which the installation of version 2.0 simply kept.

The problem you where likely having, then, was that Passenger/Apache was looking in the /2.0 directory when in fact the gems were in the /1.8 directory. Your explicitly telling apache to use the /1.8 directory thus makes sense to fix the problem.

SetEnv GEM_HOME /usr/lib/ruby/gems/1.8

You might also try using the Ruby Version Manager to handle multiple Ruby envs.

Some things I found in Google:

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