An error occured while installing tilt (1.3.3)

I can't create a rails project successfully. I get an error with tilt
gem even though it is installed on my machine. Thanks. - Jag

nandigajDRJM:~ nandigaj$ gem list

*** LOCAL GEMS ***

actionmailer (3.2.3)
actionpack (3.2.3)
activemodel (3.2.3)
activerecord (3.2.3)
activeresource (3.2.3)
activesupport (3.2.3)
arel (3.0.2)
bigdecimal (1.1.0)
builder (3.0.0)
bundler (1.1.3)
erubis (2.7.0)
hike (1.2.1)
i18n (0.6.0)
io-console (0.3)
journey (1.0.3)
json (1.6.6, 1.5.4)
mail (2.4.4)
mime-types (1.18)
minitest (2.12.1, 2.5.1)
multi_json (1.3.2)
polyglot (0.3.3)
rack (1.4.1)
rack-cache (1.2)
rack-ssl (1.3.2)
rack-test (0.6.1)
rails (3.2.3)
railties (3.2.3)
rake (0.9.2.2)
rdoc (3.12, 3.9.4)
sprockets (2.4.0, 2.1.2)
sqlite3 (1.3.6)
thor (0.14.6)
tilt (1.3.3)
treetop (1.4.10)
tzinfo (0.3.33)

nandigajDRJM:~ nandigaj$ rails new demo
      create
      create README.rdoc
      create Rakefile
      create config.ru
      create .gitignore
      create Gemfile
      create app
      create app/assets/images/rails.png
      create app/assets/javascripts/application.js
      create app/assets/stylesheets/application.css
      create app/controllers/application_controller.rb
      create app/helpers/application_helper.rb
      create app/mailers
      create app/models
      create app/views/layouts/application.html.erb
      create app/mailers/.gitkeep
      create app/models/.gitkeep
      create config
      create config/routes.rb
      create config/application.rb
      create config/environment.rb
      create config/environments
      create config/environments/development.rb
      create config/environments/production.rb
      create config/environments/test.rb
      create config/initializers
      create config/initializers/backtrace_silencers.rb
      create config/initializers/inflections.rb
      create config/initializers/mime_types.rb
      create config/initializers/secret_token.rb
      create config/initializers/session_store.rb
      create config/initializers/wrap_parameters.rb
      create config/locales
      create config/locales/en.yml
      create config/boot.rb
      create config/database.yml
      create db
      create db/seeds.rb
      create doc
      create doc/README_FOR_APP
      create lib
      create lib/tasks
      create lib/tasks/.gitkeep
      create lib/assets
      create lib/assets/.gitkeep
      create log
      create log/.gitkeep
      create public
      create public/404.html
      create public/422.html
      create public/500.html
      create public/favicon.ico
      create public/index.html
      create public/robots.txt
      create script
      create script/rails
      create test/fixtures
      create test/fixtures/.gitkeep
      create test/functional
      create test/functional/.gitkeep
      create test/integration
      create test/integration/.gitkeep
      create test/unit
      create test/unit/.gitkeep
      create test/performance/browsing_test.rb
      create test/test_helper.rb
      create tmp/cache
      create tmp/cache/assets
      create vendor/assets/javascripts
      create vendor/assets/javascripts/.gitkeep
      create vendor/assets/stylesheets
      create vendor/assets/stylesheets/.gitkeep
      create vendor/plugins
      create vendor/plugins/.gitkeep
         run bundle install
Fetching gem metadata from https://rubygems.org/
Using rake (0.9.2.2)
Using i18n (0.6.0)
Using multi_json (1.3.2)
Using activesupport (3.2.3)
Using builder (3.0.0)
Using activemodel (3.2.3)
Using erubis (2.7.0)
Using journey (1.0.3)
Using rack (1.4.1)
Using rack-cache (1.2)
Using rack-test (0.6.1)
Using hike (1.2.1)

Gem::RemoteFetcher::FetchError: SSL_connect returned=1 errno=0
state=SSLv3 read server certificate B: certificate verify failed
(https://bb-m.rubygems.org/gems/tilt-1.3.3.gem)
An error occured while installing tilt (1.3.3), and Bundler cannot
continue.
Make sure that `gem install tilt -v '1.3.3'` succeeds before bundling.
nandigajDRJM:~ nandigaj$

I can't create a rails project successfully. I get an error with tilt
gem even though it is installed on my machine. Thanks. - Jag

The certificate for rubygems.org apparently doesn't get on with the
latest ruby patch level -
http://news.ycombinator.com/item?id=3884120

Fred