uninitialized constant Gem::VERSION (NameError) on new install

Hello all,
I am working on the ruby on rails tutorial Learn Rails by Example by Michael Hartl. I installed ruby with RVM per the instructions and I am receiving errors. The last step for installation verification was verifying the version of rails. Searching through google has not produced any results. I need your help.
Mac - Leopard
RVM
Rails 3.0.4
Ruby 1.9.2-p136

cpe-70-124-54-45:~ quincy$ rails -v
/Users/quincy/.rvm/gems/ruby-1.9.2-p136@global/specifications/rake-0.8.7.gemspec:26:in load_specification': uninitialized constant Gem::VERSION (NameError)

from /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems/specification.rb:540:in `initialize'
from /Users/quincy/.rvm/gems/ruby-1.9.2-p136@global/specifications/rake-0.8.7.gemspec:3:in `new'
from /Users/quincy/.rvm/gems/ruby-1.9.2-p136@global/specifications/rake-0.8.7.gemspec:3:in `load_specification'
from /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems/source_index.rb:86:in `load_specification'
from /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems/source_index.rb:122:in `load_gems_in'
from /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems/source_index.rb:121:in `each'
from /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems/source_index.rb:121:in `load_gems_in'
from /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems/source_index.rb:75:in `from_gems_in'
from /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems/source_index.rb:47:in `from_installed_gems'
from /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems.rb:141:in `source_index'
from /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems.rb:310:in `activate'
from /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems.rb:65:in `active_gem_with_options'
from /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems.rb:50:in `gem'
from /usr/bin/rails:18