>   - GEM PATHS:
>      - /opt/ruby-enterprise-1.8.6-20080810/lib/ruby/gems/1.8
you should find the rubygems-update gem there. just go in, locate the
bin-directory and start update_rubygems from there.

still, to save yourself some trouble. look into your path-variables
and make sure everything is working correctly. otherwise you'll be
back here very soon with an other issue.
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