uninitialized constant MysqlCompat::MysqlRes with RubyMine 3.1

I'm getting this error when running the development environment through RubyMine 3.1. The mysql gem is attached, it's running off of Bundler.

gem "mysql",         "2.8.1"

Gem was installed using:

gem install mysql -- --with-mysql-config=/usr/local/mysql/bin/mysql_config

via Bundler config.

=> Booting WEBrick
=> Rails 2.3.10 application starting on [2011-03-21
13:36:43] INFO WEBrick 1.3.1
[2011-03-21 13:36:43] INFO ruby 1.8.7
(2011-02-18) [i686-darwin10.7.1]
[2011-03-21 13:36:43] INFO
WEBrick::HTTPServer#start: pid=625
=> Call with -d to detach
=> Ctrl-C to shutdown server /!\ FAILSAFE /!\ Mon Mar 21 13:36:46
-1000 2011 Status: 500 Internal Server Error uninitialized constant

System is using RVM, gemset and ruby 1.8.7, rails 2.3.10, and mysql 5.5.10

I can run the Rails console and server fine through Terminal via

ruby script/server
ruby script/console

Problem seems to be isolated to just trying to run the Rails console and server through RubyMine. There's likely some small configuration setting that I'm missing and haven't seen.
RubyMine is configured to use the ruby and gemset from RVM and it's set to ignore the global gemset as well.

Most solutions I've seen state to downgrade to mysql 5.1, but that doesn't seem to be the real solution as I can run the Rails console and server perfectly fine from the Terminal.

I've also gone ahead and tried setting up the PATH to see if that's what's causing the problem via: http://devnet.jetbrains.net/docs/DOC-1160

From RubyMine

puts ENV['PATH']

From Terminal:

I have some extra items inside of the Terminal path, but that shouldn't be of any trouble for RubyMine.


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