Updating to cutting edge is not enough. You have to ⌥+Click (Option
+Click) the “Check now” button in the Software Update prefpane.
This downloads a special TM build that corrects a bug with the way
TextMate puts Shell Variables into the environment. After this,
setting “PATH” in the Shell Variables section of preferences is
enough.
Please add the directory containing “kpsewhich” to PATH in
TextMate's Shell