Installation steps for Ruby on Rails?

The current project that I'm currently worked on has a requirement for
Ruby on Rails and the migration facility provided by it to keep
databases in sync. And, I'm completely new to this technology.

Here's my scene :
1) Ruby 1.8.7 patch level 302
2) Rails 2.3.8
3) MYSql (dnt know version)
4) OS : Windows 7

I installed the 1st via the online ruby installer; and, the next two
using 'gem install –v=2.3.8 rails' and 'gem install mysql' respectively.

Also, did 'gem install rubygems-update -v='1.4.2''
On command, rake db:migrate, Ruby is supposed to help run all the *.rb
files and update my database tables. But I come across this,

"No Rakefile found (looking for: rakefile, Rakefile, rakefile.rb,
Rakefile.rb)"
My rakeFile is present in the project. So, what am I supposed to do in
such a case?

Regards,
Gaurav Kanyalkar

Here's the full trace

rake db:migrate --trace

rake aborted!
No Rakefile found (looking for: rakefile, Rakefile, rakefile.rb,
Rakefile.rb)
C:/Ruby187/lib/ruby/gems/1.8/gems/rake-0.9.2.2/lib/rake/application.rb:495:in
`r
aw_load_rakefile'
C:/Ruby187/lib/ruby/gems/1.8/gems/rake-0.9.2.2/lib/rake/application.rb:82:in
`lo
ad_rakefile'
C:/Ruby187/lib/ruby/gems/1.8/gems/rake-0.9.2.2/lib/rake/application.rb:133:in
`s
tandard_exception_handling'
C:/Ruby187/lib/ruby/gems/1.8/gems/rake-0.9.2.2/lib/rake/application.rb:81:in
`lo
ad_rakefile'
C:/Ruby187/lib/ruby/gems/1.8/gems/rake-0.9.2.2/lib/rake/application.rb:65:in
`ru
n'
C:/Ruby187/lib/ruby/gems/1.8/gems/rake-0.9.2.2/lib/rake/application.rb:133:in
`s
tandard_exception_handling'
C:/Ruby187/lib/ruby/gems/1.8/gems/rake-0.9.2.2/lib/rake/application.rb:63:in
`ru
n'
C:/Ruby187/lib/ruby/gems/1.8/gems/rake-0.9.2.2/bin/rake:33
C:/Ruby187/bin/rake:19:in `load'
C:/Ruby187/bin/rake:19

Thanks a Bunch, All

You are running from the application where the rake file is not there. from the rails application folder ty to run this command. Then It will Identify the rake command.

Thanks Murali.
Console Error was ellaborated but never struck me to change the path and
run the command.

Regards,
Gaurav Kanyalkar