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While doing:

ruby script/generate salted_login User Localization

I got:

Gem::SourceIndex#search support for Regexp patterns is deprecated
c:/programs/ruby/lib/ruby/gems/1.8/gems/rails-2.1.0/lib/rails_generator/lookup.rb:211:in `each' is outdated
  dependency  localization
Gem::SourceIndex#search support for Regexp patterns is deprecated
c:/programs/ruby/lib/ruby/gems/1.8/gems/rails-2.1.0/lib/rails_generator/lookup.rb:211:in `each' is outdated
      exists    lang
   identical    lib/localization.rb
   identical    config/environments/localization_environment.rb
   identical    test/unit/localization_test.rb
   identical    lang/localizations.yaml
   identical    README_LOCALIZATION
   identical    LICENSE_LOCALIZATION
   identical  lib/user_system.rb
   identical  app/controllers/user_controller.rb
   identical  test/functional/user_controller_test.rb
   identical  app/helpers/user_helper.rb
   identical  app/models/user.rb
   identical  app/models/user_notify.rb
      exists  db/migrate
      create  test/mocks/test/user_notify.rb
No such file or directory - C:/xyzxyz/test/mocks/test/user_notify.rb

The solution was to create the folders test/mocks/ and test/mocks/test.