Moving back to Rails 2 (01 jun 10)
I just got a job doing Rails. Currently, we're using Ruby 1.8.7, Rails 2.3.8 and Gem 1.3.7
I got a wierd error when trying to start 'script/server'
Rails requires RubyGems >= 1.3.2.
Please install RubyGems and try again: http://rubygems.rubyforge.org
although 'gem -v' reported its version number as 1.3.7
After a lot of searching, the answer was quite simple.
Add this line at the end of your .bashrc file
export PATH=/bin:/usr/bin:$PATH
exit the terminal, restart it, cd into your Rails app and enter 'script/server'