Error installing gem

Hi,
I am getting the following error while installing the gems…
/usr/local/lib/site_ruby/1.8/rubygems.rb:272:in `initialize’: wrong
number of arguments (1 for 0) (ArgumentError)

root@raju-laptop:/home/raju/workspace# sudo gem update --system
/usr/local/lib/site_ruby/1.8/rubygems.rb:272:in initialize': wrong number of arguments (1 for 0) (ArgumentError) from /usr/local/lib/site_ruby/1.8/rubygems.rb:272:innew’
from /usr/local/lib/site_ruby/1.8/rubygems.rb:272:in
configuration' from /usr/local/lib/site_ruby/1.8/rubygems.rb:512:inpath’
from /usr/local/lib/site_ruby/1.8/rubygems/source_index.rb:66:in
installed_spec_directories' from /usr/local/lib/site_ruby/1.8/rubygems/source_index.rb:56:infrom_installed_gems’
from /usr/local/lib/site_ruby/1.8/rubygems.rb:726:in
source_index' from /usr/local/lib/site_ruby/1.8/rubygems/gem_path_searcher.rb:86:ininit_gemspecs’
from
/usr/local/lib/site_ruby/1.8/rubygems/gem_path_searcher.rb:21:in
initialize' ... 6 levels... from /usr/local/lib/site_ruby/1.8/rubygems/gem_runner.rb:8:inrequire’
from /usr/local/lib/site_ruby/1.8/rubygems/gem_runner.rb:8
from /usr/bin/gem:8:in `require’
from /usr/bin/gem:8

thanks & regards
Raju K ARalikatti