Hello,
On my local machine (Mac OS X 10.5.5), I get the following error when I try
to run script/server start :
"Rails requires RubyGems >= 1.1.1 (you have 1.0.1). Please `gem update
--system` and try again."

The Rails app was a former 1.2.6 upgraded to 2.1, and it worked fine.
I've run the rake rails:update command.

If I create a new Rails app, it starts with the command script/server start
without complaining.

I've run :
sudo gem update --system
Updating RubyGems
Nothing to update

Some infos :
* gem -v
1.3.1
* which gem
/usr/local/bin/gem
* ruby -v
ruby 1.8.7 (2008-08-11 patchlevel 72) [i686-darwin9.5.1]
* which ruby
/usr/local/bin/ruby
* rails -v
Rails 2.1.2
* which rails
/usr/local/bin/rails
* gem list
*** LOCAL GEMS ***

actionmailer (2.1.2, 2.1.0, 1.3.6)
actionpack (2.1.2, 2.1.0, 1.13.6)
actionwebservice (1.2.6)
 activerecord (2.1.2, 2.1.0, 1.15.6)
activeresource (2.1.2, 2.1.0)
activesupport (2.1.2, 2.1.0, 1.4.4)
capistrano (2.5.0)
cgi_multipart_eof_fix (2.5.0)
daemons (1.0.10)
fastthread (1.0.1)
gem_plugin (0.2.3)
highline (1.4.0)
mongrel (1.1.5)
mysql (2.7)
net-scp (1.0.1)
net-sftp (2.0.1)
net-ssh (2.0.4)
net-ssh-gateway (1.0.0)
rails (2.1.2, 2.1.0, 1.2.6)
rake (0.8.3)
rubygems-update (1.3.1)

Any idea?
Thanks in advance for your help.

Best,
Thomas.

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