I installed Rails 3.2.3 and Ruby 1.9.3 going through this solution - http://ryanbigg.com/2010/12/ubuntu-ruby-rvm-rails-and-you/. It\'s really amazing and effortless. There
For posterity: don't select a Ruby version from the wrappers folders that are generated by rvm. Ruby thinks it's OK, but you get the Rails error.