Martijn,

I have faced some of this. I found that doing
  sudo gem update --system
  sudo gem cleanup

Really helped. Sometimes I did them a couple times in a row.

The error about Rails 2.1.0 already running (or something like that)
might have to do with the environment.rb file you have, which might
specify a particular rails version. That also used to happen to me,
and I usually had several versions of Rails on one machine. I don't
believe that's ideal, so now there's just one and I edit
environment.rb for each project accordingly.

--Colin


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