Rails server comand won't start server: creates new directories

When I try to start the rails server in my project root directory, rails executes the create script.

Was working yesterday and now doing this.

Any help?

My out put is below.

VACSAL50841-2:sample_app ccherlet$ rails server       create       create app/controllers       create app/helpers       create app/models       create app/views/layouts       create config/environments       create config/initializers       create config/locales       create db       create doc       create lib       create lib/tasks       create log       create public/images       create public/javascripts       create public/stylesheets       create script/performance       create test/fixtures       create test/functional       create test/integration       create test/performance

Try 'ruby script/server'

Was working yesterday and now doing this.

Probably yesterday you installed rvm and switched to rvm 1.9.2 with new rails 3. When you logged in today your rvm, it used as default system's ruby which contains rails 2.x. Use this command to make your ruby 1.9.2 + rails3 environment default one for rvm

  rvm --default use 1.9.2