specified new ruby rvm.. now rails is broken

Hi folks,
my terminal was loading up an older version of ruby so I installed the
latest with rvm and specified the rout in my .bash_profile.

Latest ruby is being used but getting this error when trying to run rails

[BUG] Segmentation fault
ruby 1.8.7 (2012-02-08 patchlevel 358) [universal-darwin12.0]

That looks as if you are running ruby 1.8.7. What do you get if you
go into the top level folder of your rails project and do
ruby -v
rails -v