Unable to start rails after upgrade to 2.3.2

/usr/local/bin/rails:19:in `load’: no such file to load – rails
(LoadError) from /usr/local/bin/rails:19

Am unable to run the rails framework. Probable victim of a, self
inflicted, GEM update run with insufficient privileges. Failure occurs
when I attempt to run any rails commands. Rails says that it can’t
find itself, yet my machine seems to have several rails executables.

Mac OS X 10.5.6
Ruby 1.8.7 (2008-08-11 patchlevel 72) [i686-darwin9.6.0]
Gem 1.3.1
Rails install was an attempt at 2.3.2
Which ruby shows: /usr/local/bin/ruby
Which gem shows: /usr/local/bin/gem
Which rails shows: /usr/local/bin/rails

.profile file sets path as follows:
export PATH="/usr/local/bin:/usr/local/sbin:/usr/local/mysql/bin:

Have not found a .bash_profile or .bash_login file, so I believe
(assume) that the only path statement is the one in the .profile file.

Have found the following rails folders:

  1. /Developer/SDKs/MacOSX10.5.sdk/System/Library/Frameworks/
  2. Library/Ruby/Gems/1.8/gems/rails-2.2.2/bin/rails
  3. Library/Ruby/Gems/1.8/gems/rails-2.3.2/bin/rails
  4. usr/bin/rails
  5. usr/local/bin/rails

Does anyone have any suggestions on where I should look to solve this

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