Activerecord - "remove_method" fails on method "transaction"

I had a running RoR application which failed upon reboot a few days
ago. I’'m on FreeBSD 4.7, ruby 1.8.5, rails 1.1.6. As far as I know,
nothing’s changed, so I’m quite puzzled. Now when I run script/server
or script/console or even script/about, I get the following:

[…@… ~/…]$ ruby script/server --environment=production
/usr/local/lib/ruby/gems/1.8/gems/activerecord-1.14.4/lib/
active_record/transactions.rb:2:in remove_method': methodtransaction’ not defined in Transaction::Simple (NameError)
from /usr/local/lib/ruby/gems/1.8/gems/activerecord-1.14.4/lib/
active_record/transactions.rb:2:in send' from /usr/local/lib/ruby/gems/1.8/gems/activerecord-1.14.4/lib/ active_record/transactions.rb:2 from /usr/local/lib/ruby/site_ruby/1.8/rubygems/ custom_require.rb:33:ingem_original_require’
from /usr/local/lib/ruby/site_ruby/1.8/rubygems/
custom_require.rb:33:in require' from /usr/local/lib/ruby/gems/1.8/gems/activesupport-1.3.1/lib/ active_support/dependencies.rb:147:inrequire’
from /usr/local/lib/ruby/gems/1.8/gems/activerecord-1.14.4/lib/
active_record.rb:44
from /usr/local/lib/ruby/site_ruby/1.8/rubygems/
custom_require.rb:27:in gem_original_require' from /usr/local/lib/ruby/site_ruby/1.8/rubygems/ custom_require.rb:27:inrequire’
… 7 levels…
from /usr/local/lib/ruby/site_ruby/1.8/rubygems.rb:59:in
require_gem' from ./script/../config/boot.rb:28 from script/server:2:inrequire’
from script/server:2
[…@… ~/…]$

Any idea what the hell this is??

-Larry