Matt: thank you so much for finding that. I have removed it and the
problem goes away as you say. Can I recommend some improvements to
Rails to help others in this predicament:

* rake gems:install should not try to load all the rake tasks since it
has a very specific job to do and should not be sidetracked by loading
everything it comes across on the class path

* better error reporting which detects this condition and reports
where the problem might lie


Thank you again for your help.

Ari Maniatis
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