rails newbie - `gem_original_require': no such file to load -- /home/aa/rb1/config/environment (LoadError)

Hello, I'm trying to get started with Rails but I keep getting the same error, could someone please enlighten me?

$ mongrel_rails mongrel::start -p 8000 -l mongrel.log -P mongrel.pid - n 5 -e development -c /home/aa/rb1/ ** Ruby version is not up-to-date; loading cgi_multipart_eof_fix ** Starting Mongrel listening at 0.0.0.0:8000 ** Starting Rails with development environment... /usr/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:31:in `gem_original_require': no such file to load -- /home/aa/rb1/config/ environment (LoadError)         from /usr/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb: 31:in `require'         from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/../lib/ mongrel/rails.rb:147:in `rails'         from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/ mongrel_rails:113:in `cloaker_'         from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/../lib/ mongrel/configurator.rb:149:in `call'         from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/../lib/ mongrel/configurator.rb:149:in `listener'         from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/ mongrel_rails:99:in `cloaker_'         from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/../lib/ mongrel/configurator.rb:50:in `call'         from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/../lib/ mongrel/configurator.rb:50:in `initialize'         from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/ mongrel_rails:84:in `new'         from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/ mongrel_rails:84:in `run'         from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/../lib/ mongrel/command.rb:212:in `run'         from /usr/lib/ruby/gems/1.8/gems/mongrel-1.1.5/bin/ mongrel_rails:281         from /usr/bin/mongrel_rails:19:in `load'         from /usr/bin/mongrel_rails:19

I tried it both on Windows and CentOS and I get the same error.

thanks much! Cristian

What happens if you get into the "/home/aa/rb1" directory and type "script/server"?