I have installed rails and mysql. I have also installed mysql2 gem. I created a rails application by the command rails new try_cms -d mysql It was created successfully. Bu
Just ran into this problem myself. Make sure you update the version numbers.
sudo install_name_tool -change libmysqlclient.18.dylib /usr/local/mysql/lib/libmysqlclient.18.dylib /Library/Ruby/Gems/1.8/gems/mysql2-0.2.7/lib/mysql2/mysql2.bundle