Version issue with First App in Hartl Tutorial

I can't help with the problem I am afraid, but since no-one has
provided a solution I feel I should point out that RoR development on
Windows can be problematic and many believe that it is better to use
Linux (Ubuntu for example) or Mac. You have not said how you
installed Rails, I believe that on windows railsinstaller.org is
considered a good solution.

Colin