Do you have more than one gems directory.
I had a similar problem and solved it via setting the GEN_HOME variable 
to the personal gems install directory.

The problem..
[~/rails/helloblog]# ./script/generate
/usr/lib/ruby/gems/1.8/gems/activerecord-2.3.3/lib/active_record/connection_adapters/abstract/connection_specification.rb:76:in
 
`establish_connection': Please install the postgresql adapter: `gem 
install activerecord-postgresql-.......

The solution i found on net
[~/rails/helloblog]# export GEM_HOME=/home/phoad/ruby/gems
[~/rails/helloblog]# export PATH=/home/phoad/ruby/bin:$PATH

Viola..
[~/rails/helloblog]# ./script/generate scaffold Blog id:int title:string
      exists  app/models/
      exists  app/controllers/
      exists  app/helpers/
      create  app/views/blogs
      exists  app/views/layouts/
      exists  test/functional/

Good luck..
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