title: file 'lib' not found when installing rails
body: <p>something like this:</p>
  
  <pre><code>gem install rails
  Fetching: activesupport-3.0.10.gem (100%)
  Fetching: builder-2.1.2.gem (100%)
  WARNING: builder-2.1.2 has an invalid nil value for @cert_chain
  Fetching: i18n-0.5.0.gem (100%)
  Fetching: activemodel-3.0.10.gem (100%)
  Fetching: rack-1.2.3.gem (100%)
  Fetching: rack-test-0.5.7.gem (100%)
  Fetching: rack-mount-0.6.14.gem (100%)
  Fetching: tzinfo-0.3.29.gem (100%)
  Fetching: abstract-1.0.0.gem (100%)
  WARNING: abstract-1.0.0 has an invalid nil value for @cert_chain
  Fetching: erubis-2.6.6.gem (100%)
  Fetching: actionpack-3.0.10.gem (100%)
  Fetching: arel-2.0.10.gem (100%)
  Fetching: activerecord-3.0.10.gem (100%)
  Fetching: activeresource-3.0.10.gem (100%)
  Fetching: mime-types-1.16.gem (100%)
  Fetching: polyglot-0.3.2.gem (100%)
  Fetching: treetop-1.4.10.gem (100%)
  Fetching: mail-2.2.19.gem (100%)
  Fetching: actionmailer-3.0.10.gem (100%)
  Fetching: thor-0.14.6.gem (100%)
  Fetching: railties-3.0.10.gem (100%)
  Fetching: bundler-1.0.18.gem (100%)
  Fetching: rails-3.0.10.gem (100%)
  Successfully installed activesupport-3.0.10
  Successfully installed builder-2.1.2
  Successfully installed i18n-0.5.0
  Successfully installed activemodel-3.0.10
  Successfully installed rack-1.2.3
  Successfully installed rack-test-0.5.7
  Successfully installed rack-mount-0.6.14
  Successfully installed tzinfo-0.3.29
  Successfully installed abstract-1.0.0
  Successfully installed erubis-2.6.6
  Successfully installed actionpack-3.0.10
  Successfully installed arel-2.0.10
  Successfully installed activerecord-3.0.10
  Successfully installed activeresource-3.0.10
  Successfully installed mime-types-1.16
  Successfully installed polyglot-0.3.2
  Successfully installed treetop-1.4.10
  Successfully installed mail-2.2.19
  Successfully installed actionmailer-3.0.10
  Successfully installed thor-0.14.6
  Successfully installed railties-3.0.10
  Successfully installed bundler-1.0.18
  Successfully installed rails-3.0.10
  23 gems installed
  Installing ri documentation for activesupport-3.0.10...
  Installing ri documentation for builder-2.1.2...
  unable to convert "\xF1" from ASCII-8BIT to UTF-8 for README, skipping
  Installing ri documentation for i18n-0.5.0...
  Installing ri documentation for activemodel-3.0.10...
  Installing ri documentation for rack-1.2.3...
  Installing ri documentation for rack-test-0.5.7...
  Installing ri documentation for rack-mount-0.6.14...
  Installing ri documentation for tzinfo-0.3.29...
  Installing ri documentation for abstract-1.0.0...
  Installing ri documentation for erubis-2.6.6...
  Installing ri documentation for actionpack-3.0.10...
  Installing ri documentation for arel-2.0.10...
  Installing ri documentation for activerecord-3.0.10...
  Installing ri documentation for activeresource-3.0.10...
  Installing ri documentation for mime-types-1.16...
  Installing ri documentation for polyglot-0.3.2...
  Installing ri documentation for treetop-1.4.10...
  Installing ri documentation for mail-2.2.19...
  Installing ri documentation for actionmailer-3.0.10...
  Installing ri documentation for thor-0.14.6...
  Installing ri documentation for railties-3.0.10...
  Installing ri documentation for bundler-1.0.18...
  Installing ri documentation for rails-3.0.10...
  file 'lib' not found
  Installing RDoc documentation for activesupport-3.0.10...
  Installing RDoc documentation for builder-2.1.2...
  unable to convert "\xF1" from ASCII-8BIT to UTF-8 for README, skipping
  Installing RDoc documentation for i18n-0.5.0...
  Installing RDoc documentation for activemodel-3.0.10...
  Installing RDoc documentation for rack-1.2.3...
  Installing RDoc documentation for rack-test-0.5.7...
  Installing RDoc documentation for rack-mount-0.6.14...
  Installing RDoc documentation for tzinfo-0.3.29...
  Installing RDoc documentation for abstract-1.0.0...
  Installing RDoc documentation for erubis-2.6.6...
  Installing RDoc documentation for actionpack-3.0.10...
  Installing RDoc documentation for arel-2.0.10...
  Installing RDoc documentation for activerecord-3.0.10...
  Installing RDoc documentation for activeresource-3.0.10...
  Installing RDoc documentation for mime-types-1.16...
  Installing RDoc documentation for polyglot-0.3.2...
  Installing RDoc documentation for treetop-1.4.10...
  Installing RDoc documentation for mail-2.2.19...
  Installing RDoc documentation for actionmailer-3.0.10...
  Installing RDoc documentation for thor-0.14.6...
  Installing RDoc documentation for railties-3.0.10...
  Installing RDoc documentation for bundler-1.0.18...
  Installing RDoc documentation for rails-3.0.10...
  file 'lib' not found
  </code></pre>
  
  <p>and if i run <code>rake db:migrate</code></p>
  
  <p>it says:</p>
  
  <pre><code>  ............
      rake aborted!
  
  stack level too deep
  </code></pre>