title: Insecure world writable dir /usr/local in PATH when trying to install Rails 3.0.3
body: <p>I am trying to install rails 3.0.3 and i get the following error every time: </p>
  
  <pre class="lang-none prettyprint-override"><code>Insecure world writable dir /usr/local in PATH, mode 040777
  </code></pre>
  
  <p>When I check to see if it installed I get this error:</p>
  
  <pre class="lang-none prettyprint-override"><code>/System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems.rb:827:in `report_activate_error': Could not find RubyGem rails (&gt;= 0) (Gem::LoadError)
   from /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems.rb:261:in `activate'
   from /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems.rb:68:in `gem'
   from /usr/bin/rails:18
  </code></pre>
  
  <p>Any idea what I am doing wrong? Sorry, I'm a newb!</p>