I'm Running CentOS 5 32 bit version. 
This is my deploy.rb file on my local computer:
#========================
#CONFIG
#========================
set :application, "aeripets"
set :scm, :git
set :git_enable_submodules, 1
set :repository, "
[email protected]:aeripets.git"
set :branch, "master"
set :ssh_options, { :forward_agent => true }
set :stage, :production
set :user, "root"
set :use_sudo, false
set :runner, "root"
set :deploy_to, "/var/www/#{application}"
set :app_server, :passenger
set :domain, "aeripets.co.za"
#========================
#ROLES
#========================
role :app, domain
role :web, domain
role :db, domain, :primary => true
#========================
#CUSTOM
#========================
namespace :deploy do
task :start, :roles => :app do
run "touch #{current_release}/tmp/restart.txt"
end
task :stop, :roles => :app do
# Do nothing.
end
desc "Restart Application"
task :restart, :roles => :app do
run "touch #{current_release}/tmp/restart.txt"
end
end
And this the error I get on my local computer when I try to cap deploy.
  
  executing deploy'   * executingdeploy:update'  ** transaction:
  start   * executing deploy:update_code'
  executing locally: "git ls-remote 
[email protected]:aeripets.git master"
  command finished in 1297ms   * executing "git clone -q 
[email protected]:aeripets.git
  /var/www/seripets/releases/20111126013705 && cd
  /var/www/seripets/releases/20111126013705 && git checkout -q -b deploy
  32ac552f57511b3ae9be1d58aec54d81f78f8376 && git submodule -q init &&
  git submodule -q sync && export GIT_RECURSIVE=$([ ! \"git
  --version\" \\< \"git version 1.6.5\" ] && echo --recursive) && git submodule -q update --init $GIT_RECURSIVE && (echo
  32ac552f57511b3ae9be1d58aec54d81f78f8376 >
  /var/www/seripets/releases/20111126013705/REVISION)"
  servers: ["aeripets.co.za"] Password: 
  [aeripets.co.za] executing command  ** [aeripets.co.za :: err] sh: git: command not found
  command finished in 224ms
  *** [deploy:update_code] rolling back   * executing "rm -rf /var/www/seripets/releases/20111126013705; true"
  servers: ["aeripets.co.za"]
  [aeripets.co.za] executing command
  command finished in 238ms failed: "sh -c 'git clone -q 
[email protected]:aeripets.git
  /var/www/seripets/releases/20111126013705 && cd
  /var/www/seripets/releases/20111126013705 && git checkout -q -b deploy
  32ac552f57511b3ae9be1d58aec54d81f78f8376 && git submodule -q init &&
  git submodule -q sync && export GIT_RECURSIVE=$([ ! \"git
  --version`\" \< \"git version 1.6.5\" ] && echo --recursive) && git submodule -q update --init $GIT_RECURSIVE && (echo
  32ac552f57511b3ae9be1d58aec54d81f78f8376 
  /var/www/seripets/releases/20111126013705/REVISION)'" on
  aeripets.co.za