Problem installing mysql gem 2.7 on OSX lion

I am unable to install the mysql on OSX Lion. Advice??

What is thy bidding, my master? ruby -v
ruby 1.8.7 (2012-02-08 patchlevel 358) [i686-darwin11.3.0]

What is thy bidding, my master? gem -v
1.5.3

I installed mysql via .dmg:

What is thy bidding, my master? /usr/local/mysql/bin/mysql_config
Usage: /usr/local/mysql/bin/mysql_config [OPTIONS]
Options:
–cflags [-I/usr/local/mysql/include -Os -g -fno-common
-fno-strict-aliasing -arch x86_64]
–include [-I/usr/local/mysql/include]
–libs [-L/usr/local/mysql/lib -lmysqlclient
-lpthread]
–libs_r [-L/usr/local/mysql/lib -lmysqlclient_r
-lpthread]
–plugindir [/usr/local/mysql/lib/plugin]
–socket [/tmp/mysql.sock]
–port [0]
–version [5.5.25a]
–libmysqld-libs [-L/usr/local/mysql/lib -lmysqld -lpthread]
–variable=VAR VAR is one of:
pkgincludedir [/usr/local/mysql/include]
pkglibdir [/usr/local/mysql/lib]
plugindir [/usr/local/mysql/lib/plugin]

What is thy bidding, my master? gem install mysql --version 2.7 –
–with-mysql-config=/usr/local/mysql/bin/mysql_config
Building native extensions. This could take a while…
ERROR: Error installing mysql:
ERROR: Failed to build gem native extension.

    /Users/atistler/.rvm/rubies/ruby-1.8.7-p358/bin/ruby extconf.rb

–with-mysql-config=/usr/local/mysql/bin/mysql_config
checking for mysql_ssl_set()… no
checking for mysql.h… no
checking for mysql/mysql.h… no
*** extconf.rb failed ***
Could not create Makefile due to some reason, probably lack of
necessary libraries and/or headers. Check the mkmf.log file for more
details. You may need configuration options.

Provided configuration options:
–with-opt-dir
–without-opt-dir
–with-opt-include
–without-opt-include=${opt-dir}/include
–with-opt-lib
–without-opt-lib=${opt-dir}/lib
–with-make-prog
–without-make-prog
–srcdir=.
–curdir
–ruby=/Users/atistler/.rvm/rubies/ruby-1.8.7-p358/bin/ruby
–with-mysql-config

Gem files will remain installed in
/Users/atistler/.rvm/gems/[email protected]/gems/mysql-2.7 for
inspection.
Results logged to
/Users/atistler/.rvm/gems/[email protected]/gems/mysql-2.7/./gem_make.out