Bundle installs/Cannot run dbconsole

When I run bundle install from the command line I get the following
below
installed in my project directory under sqlite3--with-sqlite3lib Folder.

Fetching source index for http://rubygems.org/
Installing rake (0.8.7)
Installing abstract (1.0.0)
Installing activesupport (3.0.3)
Installing builder (2.1.2)
Installing i18n (0.5.0)
Installing activemodel (3.0.3)
Installing erubis (2.6.6)
Installing rack (1.2.1)
Installing rack-mount (0.6.13)
Installing rack-test (0.5.7)
Installing tzinfo (0.3.24)
Installing actionpack (3.0.3)
Installing mime-types (1.16)
Installing polyglot (0.3.1)
Installing treetop (1.4.9)
Installing mail (2.2.14)
Installing actionmailer (3.0.3)
Installing arel (2.0.7)
Installing activerecord (3.0.3)
Installing activeresource (3.0.3)
Using bundler (1.0.7)
Installing thor (0.14.6)
Installing railties (3.0.3)
Installing rails (3.0.3)
Installing sqlite3 (1.3.3) with native extensions
Installing sqlite3-ruby (1.3.3)
Your bundle is complete! It was installed into
./sqlite3--with-sqlite3lib

When I try running dbconsole I get

Users/musdev/project_manager/sqlite3--with-sqlite3lib/ruby/1.9.1/gems/railties-3.0.3/lib/rails/commands/dbconsole.rb:94:in
`exec': Permission denied - /usr/lib/sqlite3 (Errno::EACCES)
  from
/Users/musdev/project_manager/sqlite3--with-sqlite3lib/ruby/1.9.1/gems/railties-3.0.3/lib/rails/commands/dbconsole.rb:94:in
`start'
  from
/Users/musdev/project_manager/sqlite3--with-sqlite3lib/ruby/1.9.1/gems/railties-3.0.3/lib/rails/commands/dbconsole.rb:9:in
`start'
  from
/Users/musdev/project_manager/sqlite3--with-sqlite3lib/ruby/1.9.1/gems/railties-3.0.3/lib/rails/commands.rb:36:in
`<top (required)>'
  from script/rails:6:in `require'
  from script/rails:6:in `<main>'

Im running the latest Rails with 1.9.2, the bundle looks like its
installing 1.9.1.

Regards