Rails - May 2009 - Unused local variable load_error in boot.rb

I''m getting an ''Unused local variable load_error'' in
my .config/
boot.rb

This seems to be the problem code:

    rescue Gem::LoadError => load_error
      $stderr.puts %(Missing the Rails #{version} gem. Please `gem
install -v=#{version} rails`, update your RAILS_GEM_VERSION setting in
config/environment.rb for the Rails version you do have installed, or
comment out RAILS_GEM_VERSION to use the latest version installed.)
      exit 1
    end

Should I put in my current Rails version?
What is this looking for?
Will this freeze my system?
Do I have to change this when I update gems or rails?

My .config/environment.rb file reads as follows [comments removed]

   RAILS_GEM_VERSION = ''2.3.2'' unless defined?
RAILS_GEM_VERSION
   require File.join(File.dirname(__FILE__), ''boot'')
   Rails::Initializer.run do |config|
   config.time_zone = ''UTC''
end

Any help will be greatly appreciated. Thanks in advance,
Wayne