'rails new' does not work

It must be just me because I can't see how an error like this could be
affecting everyone without you all screaming. He's the steps to
reproduce the problem

1) Install the latest rails with 'sudo gem install rails'
2) type 'rails new myproject'. It says on the tin that this should
generate a new project. But it doesn't. The errors are in many places
they are;-

(a) the installation hasn't set up a symbolic link in /usr/bin to the
rails executable
(b) the rails executable assumes that 'railties' exists. In fact
unless you've set up a symbolic link from railties to railties-3.0.x
you're going to be going nowhere.

Is the gem installation missing something? Or are we expected to "just
know" that we have to set up symbolic links, hence the lack of
instructions to do it?

Does this only affect me? Can everyone else do "sudo gem install
rails" and it'll work perfectly first time?

Ta

John Small

You might wanna check if you have a partial rails install from your OS (i.e. apt). Try removing everything and then installing the rails gem strictly through rubygems.

I think that Lunks is right, it's something with your config:
http://pastie.org/1370927