rubymine 3.2.4 and rails 2.3.5

I have an existing rails project on my hard drive, I open it, using "open directory" option. It seems to
detect that its rails, it gives me a rails console option, but it thinks its rails 3 and cant run the server. I have seen suggestions to remove the rails 3 gem from my project, but I cant
figure this out. Can someone please help?

thanks
Joel

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