Sorry I'm just getting back to this.
I have the following in my .bashrc file which I source regularly:
[[ -s "/Users/server1/.rvm/scripts/rvm" ]] && source
"/Users/server1/.rvm/scripts/rvm" # This loads RVM into a shell session.
I can go directly into the .rvm directory /Users/server1/.rvm and access it
though *rvmsudo passenger-status*
I'm still learning some things with Unix, Ruby on Rails and Passenger:) It
is not obvious to me what could be wrong.