My bet is that you're environment doesn't have a `rails` binary and it
is finding the first one it can, which happens to be 1.9.1.

Does the same thing happen when you do:

∴ ./script/rails server

Which will be sure to use the Rails version bundler bundled for the
app with the current Ruby?

You can also check to make sure you're 1.8.7 env is correct using `rvm
info`

  ~Wayne

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