Rails requires RubyGems >= 0.9.4. Please install RubyGems and try again: http://rubygems.rubyforge.org
I was getting the error above recently anytime I would try to run script/server or script/console in Terminal, all the while I was running RubyGems 1.2.0. It took a few hours to track down the problem(s). At first I thought I had caused the error (read my previous post about hacking conf files), but as it turns out Apache and Mongrel can run side by side with no problems. I can run a static html site at http://localhost while running a Ruby on Rails site at http://0.0.0.0:3000. Pure awesomeness! But I didn’t know that until now. Back to the solution.
I googled and googled and finally found a meaningul post on the Rails forum. Here’s the thread: http://railsforum.com/viewtopic.php?id=14850 The last post was what helped me the most.
I ran sudo port uninstall readline and sudo port uninstall ruby successfully, then tried to boot Mongrel by running ruby script/server. Mongrel tried to boot, but failed. Hey, I was happy with that! By reading the stack trace I found that I was missing a few gems for my project.
After installing these gems, everything was working again. What a week. Thankfully tomorrow is FRIDAY!