to clarify: there\'s only one rails
command, which gets installed from the latest Rails gem, which is Rails 3 ATM. However, I\'m required to create a Rails 2.3 app.
(Had to make a comment since I don't have enough Stack Overflow cred and can't directly respond to answers yet.)
For folks running rails 3 now the "new" command is now required for creating new rails applications. As such "new" will need to be appended to the end of the commands.
So for Leonid Shevtsov's answer, Step 4: bundle exec rails new .
And for Robert Speicher's answer: rails new .