[ruby-on-rails] Rails 3.1 and Image Assets

You'll want to change the extension of your css file from .css.scss to .css.scss.erb and do:

background-image:url(<%=asset_path "admin/logo.png"%>);

You may need to do a "hard refresh" to see changes. CMD+SHIFT+R on OSX browsers.

In production, make sure

rm -rf public/assets    
bundle exec rake assets:precompile RAILS_ENV=production

happens upon deployment.