After installing rvm, updating .gmrc file, updating rubygems and running gem install rails -v \">=3.1.0rc\", I now seem to have a complete mess:
I had to sudo gem install bundler to make it work again.
I had pretty much the same message when trying to generate a controller after installing IntelliJ IDEA and the associated Plugin for Rail Dev. From my app directory I just executed bundle install and was then able to generate controllers again.
I've had a similiar problem. Not sure if that helps you, but you might try to install gems with rvmsudo gem install [gemname] instead of just doing gem install [gemname] or sudo gem install [gemname].
I try to explain this a bit because of the upvotes:
This basically is a path issue. If you set up gems via gem install, they mostly likely will be in another directory (e.g. /usr/local/) compared to gems set up via bundler (where you can override it with --path). Using sudo may also set them up into another directory since sudo starts a subshell which has a different environment then. This is why you have rvmsudo.
If you want to see the differences, compare $PATH, $GEM_HOME, $GEM_PATH and $BUNDLE_PATH when echoing directly, with sudo and with rvmsudo.
remove ruby first then
sudo apt-get install build-essential libssl-dev libreadline5 libreadline5-dev zlib1g zlib1g-dev
to install all needed lib then you could install ruby and rails
rvm install 1.9.3
rvm --default use 1.9.3
rvm gem install rails
I know this is a really old question but I just recently decided to move to RVM on a server I had setup a while ago and was having this same problem where gems were being installed in the wrong place and it was just messing everything up.
After a few hours of crawling through SO, I finally figured out that in my .gemrc file in my root folder, I had previously setup the gemhome: and gempath: variables and they were messing with the whole system.
After removing these lines, all my gems were working property.
Just thought I would post my answer in case someone was in the same position.
rvm rubygems current
did the trick for me.