RVM is not working over SSH.
At the command-line:
leifg@host:~$ which ruby
/usr/local/rvm/rubies/ruby-1.9.2-p290/bin/ruby
Connected
(if using Capistrano) Don't use rvm1/capistrano3 or rvm/capistrano; don't set :pty.
Change ~/.rvmrc
for the runner user, on the server, to this — note that it has to come before the line where it kills itself when not running interactively:
# get rvm for non-interactive shells (eg capistrano) too
source /etc/profile.d/rvm.sh
export BASH_ENV=$HOME/.bashrc
export rvm_is_not_a_shell_function=0
# If not running interactively, don't do anything
[ -z "$PS1" ] && return