As an interesting note,
with this rails project:

https://github.com/rdp/musicformormons


with rubygems 1.3.7

config.gem and friends work well (if it's vendored, it accepts that, if 
it's installed, it accepts that.

However, with rubygems 1.8.2, no amount of running

$ rake gems:install

prevents it from displaying the following error message:

Missing these required gems:
  rack  = 1.1.0
  RedCloth
  ...

https://gist.github.com/969791

Cheers!
-r

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