search for: read_environment_rb

...Gem::RubyGemsVersion rescue nil end def gem_version if defined? RAILS_GEM_VERSION RAILS_GEM_VERSION elsif ENV.include?(''RAILS_GEM_VERSION'') ENV[''RAILS_GEM_VERSION''] else parse_gem_version(read_environment_rb) end end def load_rubygems min_version = ''1.3.2'' require ''rubygems'' unless rubygems_version >= min_version $stderr.puts %Q(Rails requires RubyGems >= #{min_version} (you have #{rubygems_version}). Pleas...

1) I installed the ruby-1.9.2-p0 and rubygems-1.3.7 in the (/usr/local/src directory ) 2) Then i installed rails from terminal by typing follwoing sudo gem install rails --include-dependencies 3) Then i made a rails applcation from terminal as rails new demo then cd demo ruby