You were right it was the /usr/bin in front and the 
'/usr/local/lib/ruby/gems/1.8' that was screwing everything up

http://pastie.org/562566d

Everything works again, thanks! Besides the 'profile', 'bashrc', and 
'bash_profile' are there any other common locations where the PATH 
variable would be set? A few of those declarations could not be 
accounted for in those three files.
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