Rails newbie to 2.0: problem with "ruby script/generate scaffold"

Rails
1

Running:
gem 1.3.5
Rails 2.3.5
MySQL 5.0.27-community-nt

Created databases:
rts_development;
rts_test;

Showed databases:
information_schema
mysql
rts_development
rts_test

Setup privileges on databases:
grant all on rts_development.* to root’@‘localhost’ identified by
‘xxxxxx’;
grant all on rts_test.* to ‘root’@‘localhost’ identified by ‘xxxxxx’;

Tried:
ruby script/generate scaffold vendors nick_name:string qb_name:string

Got:
[snip]config/initializers/new_rails_defaults.rb:14:
undefined method `generate_best_match=’ for
ActionController::Routing:Module (NoMethodError)