Ah okay. That works.
I have uninstalled 3.0.0. (For them with the same problem: gem
uninstall rails --version 3.0.0)

Thank you Srikanth


On 15 Sep., 10:34, Srikanth Shreenivas <[email protected]> wrote:
> Since you have both RAILS 3.0.0 and 2.3.5,   RAILS 3.0.0 is gettting loaded
> first.
>
> You can either uninstall the RAILS 3.0.0 GEM, or migrate your RAILS 2.3.5
> App to use bundler. (http://gembundler.com/rails23.html).
>
> Regards,
> Srikanth

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