Problems upgrading to 1.2RC1

Hi All,
I just did an upgrade of my rails installation to Rails1.2RC1. but i
get this error when i startup my old applications: Any help will be
appreciated. Thanks in advance.

./script/server

Cannot find gem for Rails =1.1.6:
Install the missing gem with ‘gem install -v=1.1.6 rails’, or
change environment.rb to define RAILS_GEM_VERSION with your desired
version.

(Seems like i have the right rails though)

rails --version

Rails 1.1.6

gem list local

actionmailer (1.2.5.5618)
Service layer for easy email delivery and testing.

actionpack (1.12.5.5618)
Web-flow and rendering framework putting the VC in MVC.

actionwebservice (1.1.6.5618)
Web service support for Action Pack.

activerecord (1.14.4.5618)
Implements the ActiveRecord pattern for ORM.

activesupport (1.3.1.5618)
Support and utility classes used by the Rails framework.

rails (1.1.6.5618)
Web-application framework with template engine, control-flow layer,
and ORM.

rake (0.7.1)
Ruby based make-like utility.

===========================================

That works! thanks a lot - Temo

===================================
(Seems like i have the right rails though)

rails --version

Rails 1.1.6

Comment out the RAILS_GEM_VERSION line in environment.rb.

Best regards

Peter De Berdt