New Rails user, slightly confused by `rails` command


I've just installed Rails v3.0.5 and reading the guide
Where it says to do:

    rails new blog

that actually creates a site in a folder called "new".

I also tried a couple of generators, `rails generate devise:install`
created a folder called "generate", and so on.

This is the first line of output from `rails -h`:

    Usage: /usr/bin/rails /path/to/your/app [options]

Which explains why I'm getting these folders created, but not why the
guides would tell me something different.
I'm wondering if I'm doing something incredibly stupid. If I am feel
free to point it out, it's just par for the course.

Any help is much appreciated

That means you have (at least) two different versions of Rails on your
system, and the first one being found is pre-3.0.x.

Try `rails -v` and `which rails` for starters...

That was it. I now have a vague recollection of having installed Rails a couple of years ago. The rogue binary was in /usr/bin. I should not forget that lazy assumptions (like, I don't have rails installed already) will bite me on the arse!

Thanks very much.