strange error msg when i run "ruby script/server "in my new site

L

libsfan01

i just installed ruby and rails but i get this error msg when i run
"ruby script/server" in my new site:

Cannot find gem for Rails ~>1.2.1.0:
Install the missing gem with 'gem install -v=1.2.1 rails', or
change environment.rb to define RAILS_GEM_VERSION with your desired
version.
 

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