Error in creation of new Rails Project

Hi,

   I have followed all the instructions to install the ruby on rails as said in the home page ( I think I have done ). But when I run the

rails new tickets

after creating new files and sub-directories the following message appears

Using rack-ssl (1.3.2) Installing json (1.7.3) Gem::InstallError: The 'json' native gem requires installed build tools.

Please update your PATH to include build tools or download the DevKit from 'Downloads’ and follow the instructions at 'Development Kit · oneclick/rubyinstaller Wiki · GitHub’ An error occured while installing json (1.7.3), and Bundler cannot continue. Make sure that `gem install json -v '1.7.3'` succeeds before bundling.

I have downloaded the DevKit also and installed it. But looks like I am missing something in the PATH or Environment variables. Please suggest.

If a solution is already provided please suggest.

Thanks Anand