Instant Rails and cygwin problem


Has anyone dealt with this issue. I installed Instant Rails and then
setup cygwin as my shell. Everything except rake seems to work. When I
try to use rake from within cygwin, I get the following error:

rake --version

bash: /cygdrive/c/InstantRails/ruby/bin/rake: E:/Dev/RubyDev/
rubyinstaller/svn-repo/installer-win2/ruby/bin/ruby^M: bad
interpreter: No such file or directory

It seems to be complaining about an unexpected carriage return (^M).

If I run rake --version from a plain old DOS prompt, it works fine.
Does anyone know how to fix this?