➜ expertiza git:(master) ✗ ruby -v ruby 1.8.7 (2011-06-30 patchlevel 352) [i686-darwin11.1.0] ➜ expertiza git:(master) ✗ rails -v Rails 2.3.14
For those using rbenv instead of rvm
$ which iconv $ /usr/local/bin/iconv
Then use the directory location of iconv to reinstall ruby
$ CONFIGURE_OPTS="--with-iconv-dir=/usr/local" rbenv install 1.8.7-p358
Good luck
(As a side note, this error has been reported to happen in Ruby 1.8.7-p3xx)