i\'ve successfully installed rails 3.2.15 on a live ubuntu usb with data persistence before.
now that i\'ve become used to the os (Ubuntu 12.04 LTS), i\
I had the same problem: Ubuntu 12.04, ruby 2.1.0 trying to install latest rails (4.0.x). Doing gem install rails I was getting same error. What I did:
At rails -v I got Rails 4.0.3.