So I type:
shane-killians-computer:~ shanekillian$ rails -v
-bash: rails: command not found
You're absolutely right: both the "rails -v" and "rails hello" command
should work. And you DO use Terminal's command line.
The problem is your $path variable doesn't know about the directories
containing rails or ruby. Look back at the Hivelogic article about
halfway down where it talks about "paths". (What it DOESN'T say is
that the syntax to set your paths varies depending upon which shell
you're using. Terminal will tell you: it will be either "tcsh" or
"bash". Looks like you're using bash.)
Google "path Unix" to learn more about setting this variable. To find
out what your path is now, type "echo $path", and it will tell you.
Any time you're not sure if your shell knows about a command, type
"which <command>", and it will list the directory containing the
command. If there's no such command, it will say "command not found."
The easiest way to get around having to learn about the Unix shell on
the Mac is to download and install Locomotive (http://
locomotive.raaum.org/). It handles all the path stuff for you, and a
great deal more besides.