Problem in developing first application in Ruby application

Hi,
   I am a new guy in Ruby on Rails. Today I am trying to develop a
simple web application by making use of JetBrains RubyMine 3.1.1 IDE.
   My system configuration regarding Ruby on Rails is :
     OS- Windows, Ruby- 1.9.2p180 , Rails- 3.2.1, gem-1.8.15
   My folder structure is like :
      C:/ruby/rubygem/ApplicationFolderName(named as "Scripting")
   I run "gem install mysql" and "gem install mysql2" from command
prompt under C:/ruby/rubygem/ , though I did not get the difference
between mysql and mysql2. Both the cases I got "1 gem installed", for
mysql2("Successfully installed mysql2-0.3.11-x86-mingw32") and for
mysql("Successfully installed mysql-2.8.1-x86-mingw32"). Also in Editor,
showing to install mysql Drivers which are required for RubyMine to
connect to the Database(MYSQL Connector/J(5.1.18)). I install that
driver also.

   Now, I create a project having the type "Rails Application" and
database is "Mysql". I switch to the "Rails" view. Then try to run this
application and get the following error:

    C:\ruby\bin\ruby.exe -e
$stdout.sync=true;$stderr.sync=true;load($0=ARGV.shift)
C:/ruby/rubygem/Scripting/Scripting/script/rails server -b 127.0.0.1 -p
3000 -e development
C:/ruby/lib/ruby/gems/1.9.1/gems/mysql2-0.3.11-x86-mingw32/lib/mysql2/mysql2.rb:2:in
`require': Incorrect MySQL client library version! This gem was compiled
for 6.0.0 but the client library is 5.0.89. (RuntimeError)
  from
C:/ruby/lib/ruby/gems/1.9.1/gems/mysql2-0.3.11-x86-mingw32/lib/mysql2/mysql2.rb:2:in
`<top (required)>'
  from
C:/ruby/lib/ruby/gems/1.9.1/gems/mysql2-0.3.11-x86-mingw32/lib/mysql2.rb:9:in
`require'
  from
C:/ruby/lib/ruby/gems/1.9.1/gems/mysql2-0.3.11-x86-mingw32/lib/mysql2.rb:9:in
`<top (required)>'
  from
C:/ruby/lib/ruby/gems/1.9.1/gems/bundler-1.0.21/lib/bundler/runtime.rb:68:in
`require'
  from
C:/ruby/lib/ruby/gems/1.9.1/gems/bundler-1.0.21/lib/bundler/runtime.rb:68:in
`block (2 levels) in require'
  from
C:/ruby/lib/ruby/gems/1.9.1/gems/bundler-1.0.21/lib/bundler/runtime.rb:66:in
`each'
  from
C:/ruby/lib/ruby/gems/1.9.1/gems/bundler-1.0.21/lib/bundler/runtime.rb:66:in
`block in require'
  from
C:/ruby/lib/ruby/gems/1.9.1/gems/bundler-1.0.21/lib/bundler/runtime.rb:55:in
`each'
  from
C:/ruby/lib/ruby/gems/1.9.1/gems/bundler-1.0.21/lib/bundler/runtime.rb:55:in
`require'
  from
C:/ruby/lib/ruby/gems/1.9.1/gems/bundler-1.0.21/lib/bundler.rb:122:in
`require'
  from C:/ruby/rubygem/Scripting/Scripting/config/application.rb:7:in
`<top (required)>'
  from
C:/ruby/lib/ruby/gems/1.9.1/gems/railties-3.2.1/lib/rails/commands.rb:53:in
`require'
  from
C:/ruby/lib/ruby/gems/1.9.1/gems/railties-3.2.1/lib/rails/commands.rb:53:in
`block in <top (required)>'
  from
C:/ruby/lib/ruby/gems/1.9.1/gems/railties-3.2.1/lib/rails/commands.rb:50:in
`tap'
  from
C:/ruby/lib/ruby/gems/1.9.1/gems/railties-3.2.1/lib/rails/commands.rb:50:in
`<top (required)>'
  from C:/ruby/rubygem/Scripting/Scripting/script/rails:6:in `require'
  from C:/ruby/rubygem/Scripting/Scripting/script/rails:6:in `<top
(required)>'
  from -e:1:in `load'
  from -e:1:in `<main>'

Process finished with exit code 1

   Please help me how to solve this. I am eagerly waiting for your kind
answer.