When I try to add Sass::Plugin.options[:style] = :compact to environment.rb 
When I try to start up my server I get:
uninitialized constant Sass (NameError)
I have added gem 'haml', '3.0.0' to my Gemfile.
Anybody ran into this?
I tried what you described and it worked fine for me.  I'm using haml 3.0.4 which is the latest version.  You may want to run a gem update haml on your system and try again.  The list of changes from 3.0.0 to 3.0.4 are at http://sass-lang.com/docs/yardoc/file.SASS_CHANGELOG.html
I also suggest not putting this in your environment.rb, but instead create a config/initializers/sass_config.rb file and put your SASS config there.  Mine looks like this:
Sass::Plugin.options[:property_syntax] = :old
Sass::Plugin.remove_template_location("./public/stylesheets/sass")
Sass::Plugin.add_template_location("./app/stylesheets")
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