Rails - Jun 2012 - Error in creation of new Rails Project

Hi,

   I have followed all the instructions to install the ruby on rails
as said in the home page ( I think I have done ). But when I run the
> rails new tickets
after creating new files and sub-directories the following message
appears

Using rack-ssl (1.3.2)
Installing json (1.7.3)
Gem::InstallError: The ''json'' native gem requires installed
build
tools.

Please update your PATH to include build tools or download the DevKit
from ''http://rubyinstaller.org/downloads'' and follow the
instructions
at
''http://github.com/oneclick/rubyinstaller/wiki/Development-Kit''
An error occured while installing json (1.7.3), and Bundler cannot
continue.
Make sure that `gem install json -v ''1.7.3''` succeeds before
bundling.

I have downloaded the DevKit also and installed it. But looks like I
am missing something in the PATH or Environment variables. Please
suggest.

If a solution is already provided please suggest.

Thanks
Anand

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