RAILS 3-BETA-NO SUCH FILE TO LOAD RAILS/CLI(LOAD ERROR)

RAILS 3-BETA-NO SUCH FILE TO LOAD RAILS/CLI(LOAD ERROR)

When trying to create a rails project you might encounter the following error:

/Users/jfischer/.rvm/gems/ruby-1.9.1-p378/gems/rails-3.0.0.beta3/bin/rails:1:in `require’: no such file to load — rails/cli (LoadError)
from /Users/jfischer/.rvm/gems/ruby-1.9.1-p378/gems/rails-3.0.0.beta3/bin/rails:1:in `<top (required)>’
from /Users/jfischer/.rvm/gems/ruby-1.9.1-p378/bin/rails:19:in `load’
from /Users/jfischer/.rvm/gems/ruby-1.9.1-p378/bin/rails:19:in `<main>’

The problem can be solved by uninstalling all prior rails and active* beta versions using the gem command:

gem uninstall railties actionpack actionmailer activemodel activeresource activerecord activesupport

Then reinstall rails:

gem install rails --prerelease --no-ri --no-rdoc