I\'m running into issues trying to install Rails on OS X Lion using RVM.
So far, I have done the following:
I had the same issue on my system. I installed the Xcode command line tools from Apple which ships with LLVM compiler and without an LLVM free one.
Ruby 1.8.7 won't work with an LLVM compiler not even with CC=clang, so installing an LLVM free gcc solves the problem.
There are multiple options listed here:
https://github.com/mxcl/homebrew/wiki/Custom-GCC-and-cross-compilers
Long story short, install GCC v4.2 with Homebrew:
brew install https://raw.github.com/Homebrew/homebrew-dupes/master/apple-gcc42.rb
and then install ruby 1.8.7:
CC=gcc-4.2 rvm install 1.8.7