Jens K. wrote in post #1009365:
> Hi,
>
> I had the same problem with Ruby 1.9.2 and Rails 3.0.9.
>
> Problem: "gem install rails" would always delete the "lib" folder, even
> after manually creating it.
>
> Solution: Creating a ".txt" file within the manually created "lib"
> folder and opening that file in an editor. Now the file was gone after
> "gem install rails" but at least the folder remained and the
> installation ran through. :-)
>
> Cheers,
>
> Jens

It not works, still delete the 'lib' folder if you have the permission 
to write folder, otherwise you can not install it.

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