mongrel startup error... confusion ensues... :) "HALP"

Howdy. I'm having a problem starting mongrel (script/server) on a
sample project I got from a book code (RailsSpace, great book). I
downloaded the entire project, updated database.yml to match my needs,
and attempted to launch script/server.

From Googling, I guess that there's some problem with my gems vs what

this project is really expecting. But I have not a clue the proper
way to find and solve the issue.

Here are my build details:
ruby 1.8.6 (2007-03-13 patchlevel 0) [powerpc-darwin8.9.0]
gem 0.9.2
rails 1.2.3

Thanks in advance for help.
Michael

Here's what I got when trying to launch script/server:

http://pastie.caboo.se/73185 (or see below)

01:19:06 : ~/work/rails_space $ script/server webrick
=> Booting WEBrick...
/usr/local/lib/ruby/gems/1.8/gems/rails-1.2.3/lib/commands/servers/
webrick.rb:11: warning: already initialized constant OPTIONS
=> Booting Mongrel (use 'script/server webrick' to force WEBrick)
=> Rails application starting on http://0.0.0.0:3000
=> Call with -d to detach
=> Ctrl-C to shutdown server
** Starting Mongrel listening at 0.0.0.0:3000
** Starting Rails with development environment...
Exiting
/usr/local/lib/ruby/gems/1.8/gems/rails-1.2.3/lib/commands/servers/
mongrel.rb:15: warning: already initialized constant OPTIONS
/usr/local/lib/ruby/gems/1.8/gems/rails-1.2.3/lib/commands/servers/
mongrel.rb:18: undefined method `options' for []:Array (NoMethodError)
        from /usr/local/lib/ruby/site_ruby/1.8/rubygems/
custom_require.rb:32:in `gem_original_require'
        from /usr/local/lib/ruby/site_ruby/1.8/rubygems/
custom_require.rb:32:in `require'
        from /usr/local/lib/ruby/gems/1.8/gems/activesupport-1.4.2/lib/
active_support/dependencies.rb:495:in `require'
        from /usr/local/lib/ruby/gems/1.8/gems/activesupport-1.4.2/lib/
active_support/dependencies.rb:342:in `new_constants_in'
        from /usr/local/lib/ruby/gems/1.8/gems/activesupport-1.4.2/lib/
active_support/dependencies.rb:495:in `require'
        from /usr/local/lib/ruby/gems/1.8/gems/rails-1.2.3/lib/
commands/server.rb:39
        from /usr/local/lib/ruby/site_ruby/1.8/rubygems/
custom_require.rb:32:in `gem_original_require'
        from /usr/local/lib/ruby/site_ruby/1.8/rubygems/
custom_require.rb:32:in `require'
        from script/server:3

I have had this issue myself a few times. I have heard that it can be caused by out of date gems, but what those gems are is not clear. I have always been using edge rails at the time.

YMMV but the way that I got out of it was to upgrade all mongrel gems, and update edge rails to a new version (or one I know works)

HTH but I can’t say for sure.

Cheers
Daniel