The problem seems to be with building gems from source and using
the default install path, which I did on the first install. There
were actually bigger problems than this error. The source of all
problems was a screw up of the load path. If I used the
rubygems1.9.1 package everything works. The build from source
installs gems in a different path than the package install.
8 Posted by Jonathan Bryant on 23 Mar, 2010 01:25 PM
The rubygems1.9.1 package installs 1.3.5, but 1.3.6 is needed
for Bundler & Rails 3. My problems started after running
update_rubygems. This is a, I believe, Ubuntu specific
problem because gem update --system is disabled by
default and rubygems-update has to be used, forcing
the source install.