This template installs rspec for tests, will_paginate or kaminari for pagination and default bootstrap or one of bootswatch. To use enter the following command
rails new app_name -T -m rails3-templates\main.rb
(in the top level folder where you need the app folder to be present)
After the app is created, cd to directory
cd app_name
And then run the server
rails server
That's it! You are all set :) Navigate to http://localhost:3000/home/index, you will see the app running with the selected bootswatch (or default bootstrap) theme! Have fun!!!