well, i tried rvm implode and a fresh install using these directions:
http://ryanbigg.com/2010/12/ubuntu-ruby-rvm-rails-and-you/

still same problem:
mwr@mwr-Ubuntu:~$ ls
app     db       Documents  log       Projects  script     tmp
build   Desktop  Downloads  Music     Public    Templates  vendor
config  doc      lib        Pictures  public    test       Videos
mwr@mwr-Ubuntu:~$ rails new blargh/here
Can't initialize a new Rails application within the directory of 
another, please change to a non-Rails directory first.
Type 'rails' for help.
mwr@mwr-Ubuntu:~$ which rails
/home/mwr/.rvm/gems/ruby-1.9.3-p429/bin/rails
mwr@mwr-Ubuntu:~$ rails new blog
Can't initialize a new Rails application within the directory of 
another, please change to a non-Rails directory first.
Type 'rails' for help.
mwr@mwr-Ubuntu:~$

Im at a loss, going to try to post to ubuntu specific forums. Thanks 
everyone for your help and if I fix it I will post here in case it helps 
someone else.

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