Rails: command not found

I installed ruby, gem and then Rails. Rails seems to be installed (gem
list --local), but when I run it, I get the “rails: command not found”

My linux $PATH is /usr/local/bin:/usr/bin:/bin:/usr/games.

I did try to find rails on the system and I came up with this:

Is it wise to add /var/lib/gems/1.8/bin/ to $PATH? What it should have
happened when I installed Rails and it didn’t happen?

I am running Debian 4.0r3 Etch.