Can't make a rails app

Hello people.

When I try and create a new Rails app in RubyMine, the run window says it's executing the command

/usr/local/bin/ruby -e $stdout.sync=true;$stderr.sync=true;load($0=ARGV.shift) /usr/local/ruby/lib/ruby/gems/1.9.1/gems/rails-3.0.7/bin/rails 3.0.7 new /home/david/RubymineProjects/steve --skip --database=mysql

and prints the output

  rails new APP_PATH

ie, the help for rails, what you'd get if you ran it with incorrect parameters

When I try the command in a terminal window (after escaping the necessary characters) I get the same result

However, when I run the same command in the terminal, but without the argument 3.0.7, everything works fine - which makes sense, since the 3.0.7 argument isn't part of the standard rails command, right?

So where has this extra argument come from, and how do I get rid of it?

If it helps, I'm using Rails 3.0.7, Ruby 1.9.2 and the OS is Ubuntu 10.04

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