OK, I was somehow able to resolve this error by reinstalling both rake 
and rails.  Now I get a different error:

$ rake db:migrate
(in /Users/devin/Sites/test)
dyld: lazy symbol binding failed: Symbol not found: _mysql_init
  Referenced from: 
/usr/local/lib/ruby/gems/1.8/gems/mysql-2.8.1/lib/mysql_api.bundle
  Expected in: flat namespace

dyld: Symbol not found: _mysql_init
  Referenced from: 
/usr/local/lib/ruby/gems/1.8/gems/mysql-2.8.1/lib/mysql_api.bundle
  Expected in: flat namespace

Trace/BPT trap

-------------

MySQL does work fine, but rails isn't seeing it:

irb(main):001:0> require 'mysql'
LoadError: no such file to load -- mysql
  from (irb):1:in `require'
  from (irb):1
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