webrick won't boot, deprecation warning

I haven't worked on my Rails project in a while and today I decided to
shake the dust off her and give her a go...

I did an svn up on my entire project which also updated the svn
external "rails" in RAILS_ROOT/vendor.

When I tried to start webrick, it spit out this message and died:
=> Booting WEBrick...
DEPRECATION WARNING: Reloadable::Subclasses has been deprecated and
has no effect. See http://www.rubyonrails.org/deprecation for
details. (called from /usr/lib/ruby/gems/1.8/gems/actionpack-1.12.5/

Three questions:
1) Why is it using actionpack in /usr/lib/ruby/gems/1.8/gems instead
of RAILS_ROOT/vendor/rails?
2) Why is webrick not booting?
3) How do I update the stuff in RAILS_ROOT/script (which is a part of
my svn project, but obviously not Rails)?

Thanks for the help.

P.S. One more question. How do I make an svn external checkout of
the latest stable version of Rails (I think currently mine is set to
Rail's HEAD and I'm getting development versions)?