I just upgraded to snow leopard. Before, I had everything running fine, but now when I start the server from the terminal I get:
=> Booting WEBrick
=>
For some reason, this didn't work too well for me.
I had to basically start from scratch, following these instructions: http://hivelogic.com/articles/ruby-rails-leopard from the "Setting Up" stage.
To be clear, I tried the steps above. I tried installing XCode. I tried recompiling Rubygems...Only when I recompiled Ruby itself, THEN Rubygems, THEN uninstall and reinstall sqlite3-ruby did things clear up.
I hope this helps.