Using Factory Girl with Rails 3

Setting up a new project, I couldn't get FactoryGirl working. From the README:
If you want to use factory_girl with Rails 3, see
I added this to my Gemfile:
gem 'factory_girl_rails'
A bundle install to install and done. Note: I'm using rspec2 and putting my factories in spec/factories/*_factory.rb and I've seen references to spec/support/factories/*_factory.rb as well. I'm not sure if either is the blessed location.

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