Rails not using correct version of Ruby

Question

New information

This is what happens with rails console:

Loading development environment (Rails 3.1.1)
ruby-1.9.2-p290 :001 &         


        

Answer 1

I would go for bad gem/rails install:

gem empty
gem update --system
gem install bundler --no-ri --no-rdoc
gem install rails --no-ri --no-rdoc