Issue in rails new 'Appname'

[alcina]

Hi,

I have installed jruby 1.7.4 and then i did rails install.
Attached file conatins the list of local gems and the error which I am
getting while creating new application using rails new Appname command.

Can you please suggest something?

Thanks,
Ajay Gera

[ag367e]

yes: re-run ‘bundle install’ inside newly created Appname.

this is the only failing step