socket.io keeps 404ing?

sorry for the silly question and im sure its a noob mistake. I am following the how to use for socket io: http://socket.io/#how-to-use and keep having an problem;

I have a node app (running version 3.0 alpha of express) and have the following:

app = express()

io = require('socket.io').listen app

I have edited the layout.jade and added:

script(src="/socket.io/socket.io.js")

I have also run npm install socket.io and confirmed that it starts fine on the server.

If I browse to any page, console keeps showing:

GET http://localhost:3000/socket.io/socket.io.js 404 (Not Found)

Anyone else experienced this issue?

Here are step by step instructions I just tested them

express socket
cd socket
npm install
npm install socket.io

Add the following in app.js

var io = require('socket.io').listen(app);

Run

node app

In the console you should see

info  - socket.io started

In the browser go to

http://localhost:3000/socket.io/socket.io.js

You should see the raw JavaScript

Edit:

I'm also having problems with 3.0alpha1. Looks like a bug. Here is an ugly work around

var fs = require('fs');
app.get('/socket.io/socket.io.js', function(req, res) {
    fs.readFile('/PROJECT_HOME/node_modules/socket.io/lib/socket.io.js', function(error, content) {
        if (error) {
            res.writeHead(500);
            res.end();
        }
        else {
            res.writeHead(200, { 'Content-Type': 'text/javascript' });
            res.end(content, 'utf-8');
        }
    });
});

Are you runnning layout.jade from the app.js?

app.get('/',function(req,res){
    res.sendfile('index.html');
});

This needs to be included in the app.js assuming your template is in index.html file.