I have been working on updating my gem (whm_xml at https://github.com/ivanoats/whm_xml_api_ruby ) to make it work with ruby 1.9.2, latest rubygems, latest bundler, latest rd
I fooled around with the include Rake::DSL, etc and just got other errors.
adding
gem 'rake', '0.8.7'
to the Gemfile seems to work for me