Tushar Patil wrote in post #1115001:
> I create a new app => rails new demo
>
> I have a rails3 & ruby 1.9.1
> After that i try  to install bundle, but it will give a error

I thought Ruby 1.9.1 was completely broken when trying to run Rails. Try 
Ruby 1.9.3.

> Bundler could not find compatible versions for gem "bundler":
>   In Gemfile:
>     rails (= 4.0.0) ruby depends on
>       bundler (< 2.0, >= 1.3.0) ruby

This is indicating Rails 4.0.0. I'm quite sure that won't work properly 
with Ruby 1.9.1. Compatible versions for Rails 4 are Ruby 1.9.3 and 
2.0.0.

>   Current Bundler version:
>     bundler (1.1.4)

The current version of Bundler is 1.3.5 and it compatible with the 
current release of Rails 4.0.0.

> This Gemfile requires a different version of Bundler.
> Perhaps you need to update Bundler by running `gem install bundler`?
>
>
> Please let  me know where i am wrong,

Did you do as suggested and run "gem install bundler"?

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