Trouble starting the server, HELP PLEASE!

can anybody tell me what is going wrong from the information taken from the development log below. WHen i start WEBrick and try and view a page on the localhost i get the following error, "We're sorry, but something went wrong.We've been notified about this issue and we'll take a look at it shortly." I'm a complete beginner and really want to start learning Ruby on rails, but cannot at the moment get past the setup phase despite a long time trying and i feel I'm almost there. Hope someone can help.

# Logfile created on Wed Mar 24 17:13:17 +0000 2010/!\ FAILSAFE /!\ Wed Mar 24 17:13:27 +0000 2010   Status: 500 Internal Server Error   uninitialized constant Encoding     /usr/local/lib/ruby/gems/1.8/gems/activesupport-2.3.5/lib/ active_support/dependencies.rb:443:in `load_missing_constant'     /usr/local/lib/ruby/gems/1.8/gems/activesupport-2.3.5/lib/ active_support/dependencies.rb:80:in `const_missing'     /usr/local/lib/ruby/gems/1.8/gems/activesupport-2.3.5/lib/ active_support/dependencies.rb:92:in `const_missing'     /usr/local/lib/ruby/gems/1.8/gems/sqlite3-0.0.8/lib/sqlite3/ encoding.rb:9:in `find'     /usr/local/lib/ruby/gems/1.8/gems/sqlite3-0.0.8/lib/sqlite3/ database.rb:66:in `initialize'     /usr/local/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/ active_record/connection_adapters/sqlite3_adapter.rb:13:in `new'     /usr/local/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/ active_record/connection_adapters/sqlite3_adapter.rb:13:in `sqlite3_connection'     /usr/local/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/ active_record/connection_adapters/abstract/connection_pool.rb:223:in `send'     /usr/local/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/ active_record/connection_adapters/abstract/connection_pool.rb:223:in `new_connection'     /usr/local/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/ active_record/connection_adapters/abstract/connection_pool.rb:245:in `checkout_new_connection'     /usr/local/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/ active_record/connection_adapters/abstract/connection_pool.rb:188:in `checkout'     /usr/local/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/ active_record/connection_adapters/abstract/connection_pool.rb:184:in `loop'     /usr/local/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/ active_record/connection_adapters/abstract/connection_pool.rb:184:in `checkout'     /usr/local/lib/ruby/1.8/monitor.rb:242:in `synchronize'     /usr/local/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/ active_record/connection_adapters/abstract/connection_pool.rb:183:in `checkout'     /usr/local/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/ active_record/connection_adapters/abstract/connection_pool.rb:98:in `connection'     /usr/local/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/ active_record/connection_adapters/abstract/connection_pool.rb:326:in `retrieve_connection'     /usr/local/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/ active_record/connection_adapters/abstract/connection_specification.rb: 123:in `retrieve_connection'     /usr/local/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/ active_record/connection_adapters/abstract/connection_specification.rb: 115:in `connection'     /usr/local/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/ active_record/query_cache.rb:9:in `cache'     /usr/local/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/ active_record/query_cache.rb:28:in `call'     /usr/local/lib/ruby/gems/1.8/gems/activerecord-2.3.5/lib/ active_record/connection_adapters/abstract/connection_pool.rb:361:in `call'     /usr/local/lib/ruby/gems/1.8/gems/actionpack-2.3.5/lib/ action_controller/string_coercion.rb:25:in `call'     /Users/peterorpete/.gem/ruby/1.8/gems/rack-1.0.1/lib/rack/head.rb: 9:in `call'     /Users/peterorpete/.gem/ruby/1.8/gems/rack-1.0.1/lib/rack/ methodoverride.rb:24:in `call'     /usr/local/lib/ruby/gems/1.8/gems/actionpack-2.3.5/lib/ action_controller/params_parser.rb:15:in `call'     /usr/local/lib/ruby/gems/1.8/gems/actionpack-2.3.5/lib/ action_controller/session/cookie_store.rb:93:in `call'     /usr/local/lib/ruby/gems/1.8/gems/actionpack-2.3.5/lib/ action_controller/failsafe.rb:26:in `call'     /Users/peterorpete/.gem/ruby/1.8/gems/rack-1.0.1/lib/rack/lock.rb: 11:in `call'     /Users/peterorpete/.gem/ruby/1.8/gems/rack-1.0.1/lib/rack/lock.rb: 11:in `synchronize'     /Users/peterorpete/.gem/ruby/1.8/gems/rack-1.0.1/lib/rack/lock.rb: 11:in `call'     /usr/local/lib/ruby/gems/1.8/gems/actionpack-2.3.5/lib/ action_controller/dispatcher.rb:114:in `call'     /usr/local/lib/ruby/gems/1.8/gems/actionpack-2.3.5/lib/ action_controller/reloader.rb:34:in `run'     /usr/local/lib/ruby/gems/1.8/gems/actionpack-2.3.5/lib/ action_controller/dispatcher.rb:108:in `call'     /usr/local/lib/ruby/gems/1.8/gems/rails-2.3.5/lib/rails/rack/ static.rb:31:in `call'     /Users/peterorpete/.gem/ruby/1.8/gems/rack-1.0.1/lib/rack/ urlmap.rb:46:in `call'     /Users/peterorpete/.gem/ruby/1.8/gems/rack-1.0.1/lib/rack/ urlmap.rb:40:in `each'     /Users/peterorpete/.gem/ruby/1.8/gems/rack-1.0.1/lib/rack/ urlmap.rb:40:in `call'     /usr/local/lib/ruby/gems/1.8/gems/rails-2.3.5/lib/rails/rack/ log_tailer.rb:17:in `call'     /Users/peterorpete/.gem/ruby/1.8/gems/rack-1.0.1/lib/rack/ content_length.rb:13:in `call'     /Users/peterorpete/.gem/ruby/1.8/gems/rack-1.0.1/lib/rack/handler/ webrick.rb:50:in `service'     /usr/local/lib/ruby/1.8/webrick/httpserver.rb:104:in `service'     /usr/local/lib/ruby/1.8/webrick/httpserver.rb:65:in `run'     /usr/local/lib/ruby/1.8/webrick/server.rb:173:in `start_thread'     /usr/local/lib/ruby/1.8/webrick/server.rb:162:in `start'     /usr/local/lib/ruby/1.8/webrick/server.rb:162:in `start_thread'     /usr/local/lib/ruby/1.8/webrick/server.rb:95:in `start'     /usr/local/lib/ruby/1.8/webrick/server.rb:92:in `each'     /usr/local/lib/ruby/1.8/webrick/server.rb:92:in `start'     /usr/local/lib/ruby/1.8/webrick/server.rb:23:in `start'     /usr/local/lib/ruby/1.8/webrick/server.rb:82:in `start'     /Users/peterorpete/.gem/ruby/1.8/gems/rack-1.0.1/lib/rack/handler/ webrick.rb:14:in `run'     /usr/local/lib/ruby/gems/1.8/gems/rails-2.3.5/lib/commands/ server.rb:111     /usr/local/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:31:in `gem_original_require'     /usr/local/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:31:in `require'     script/server:3

dont worry about this, i just stopped trying to have a version of ruby in my local folder and everything seems to work fine now