Frederick Cheung wrote:
> Don't think xcode does anything with rails at all

I'm pretty sure you're correct Fred. Installing the developer tools 
(including Xcode) also install Ruby and Rails, along with other useful 
developer related things like gcc, cvs, Subversion, etc. But, other than 
that Xcode itself doesn't interact with Rails.

I do have a couple of recommendations though. Before you do anything 
else with updating, first update Rubygems with:

sudo gem update --system

Then your should be safe to go ahead and update any gems you like, 
including Rails.

I'm not sure if this matters, but I don't really use the gem update 
command, other than to update Rubygems itself. Instead I just use the 
gem install command to install updated versions:

sudo gem install rails

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