REE installed & working, but rubygems load error persists in cmdline



After a LOT of struggling, I managed to install REE + Passenger on
Solaris and everything seems to work when Passenger serves the
applications. But there’s one annoying details still pending: when I
invoke rails from the cmdline (for example: rails -v) it fails due to
rubygems load error (require ‘rubygems’). Why does it work under
Passenger and not in the cmdline? Any clues on what’s wrong?

Cheers, Sazima