OCI Library Initialization Error

I am attempting to connect to ORACLE11g however i am getting the following error:

"OCI Library Initialization Error"

IT always errors on OCIENV.init(). I cant see anything wrong on the ENV configurations.

Has anyone had this problem, or any suggestions on where i should look for anwers?

I am using the following gems: ruby-oci8 (1.0.4) activerecord-oracle-adapter (1.0.0.9250) activerecord-oracle_enhanced-adapter (1.2.0) activerecord (2.3.2)

TNS_ADMIN, ORACLE_HOME are configured.

The output is below:

** Invoke db:migrate (first_time) ** Invoke environment (first_time) ** Execute environment ** Execute db:migrate rake aborted!

OCI Library Initialization Error C:/Ruby/lib/ruby/gems/1.8/gems/ruby-oci8-1.0.4-x86-mswin32/lib/oci8.rb:58:in `init' C:/Ruby/lib/ruby/gems/1.8/gems/ruby-oci8-1.0.4-x86-mswin32/lib/oci8.rb:58 C:/Ruby/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:36:in `gem_original_require' C:/Ruby/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:36:in `require' C:/Ruby/lib/ruby/gems/1.8/gems/activesupport-2.2.2/lib/active_support/dependencies.rb:153:in `require' C:/Ruby/lib/ruby/gems/1.8/gems/activesupport-2.2.2/lib/active_support/dependencies.rb:521:in `new_constants_in' C:/Ruby/lib/ruby/gems/1.8/gems/activesupport-2.2.2/lib/active_support/dependencies.rb:153:in `require' C:/Ruby/lib/ruby/gems/1.8/gems/activesupport-2.2.2/lib/active_support/core_ext/kernel/requires.rb:7:in `require_library_or_gem' C:/Ruby/lib/ruby/gems/1.8/gems/activesupport-2.2.2/lib/active_support/core_ext/kernel/reporting.rb:11:in `silence_warnings' C:/Ruby/lib/ruby/gems/1.8/gems/activesupport-2.2.2/lib/active_support/core_ext/kernel/requires.rb:5:in `require_library_or_gem' C:/Ruby/lib/ruby/gems/1.8/gems/activerecord-oracle-adapter-1.0.0.9250/lib/active_record/connection_adapters/oci_adapter.rb:29 C:/Ruby/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:36:in `gem_original_require' C:/Ruby/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:36:in `require' C:/Ruby/lib/ruby/gems/1.8/gems/activesupport-2.2.2/lib/active_support/dependencies.rb:153:in `require' C:/Ruby/lib/ruby/gems/1.8/gems/activesupport-2.2.2/lib/active_support/dependencies.rb:521:in `new_constants_in' C:/Ruby/lib/ruby/gems/1.8/gems/activesupport-2.2.2/lib/active_support/dependencies.rb:153:in `require' C:/Ruby/lib/ruby/gems/1.8/gems/activerecord-2.2.2/lib/active_record/connection_adapters/abstract/connection_specification.rb:72:in `establish_connection' C:/Ruby/lib/ruby/gems/1.8/gems/activerecord-2.2.2/lib/active_record/connection_adapters/abstract/connection_specification.rb:58:in `establish_connection' C:/Ruby/lib/ruby/gems/1.8/gems/activerecord-2.2.2/lib/active_record/connection_adapters/abstract/connection_specification.rb:53:in `establish_connection' C:/Ruby/lib/ruby/gems/1.8/gems/rails-2.2.2/lib/initializer.rb:392:in `initialize_database' C:/Ruby/lib/ruby/gems/1.8/gems/rails-2.2.2/lib/initializer.rb:139:in `process' C:/Ruby/lib/ruby/gems/1.8/gems/rails-2.2.2/lib/initializer.rb:112:in `send' C:/Ruby/lib/ruby/gems/1.8/gems/rails-2.2.2/lib/initializer.rb:112:in `run' C:/Users/tgut9335/Documents/NetBeansProjects/hr/config/environment.rb:10