Installation errors

[Nidsi]

Hi, I installed mulberry on my Mac. When I run the mulberry scaffold I get this error.

/System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems/custom_require.rb:31:in `gem_original_require': no such file to load -- bundler/setup (LoadError)

from /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems/custom_require.rb:31:in `require'

from /Users/NIDMAC/Documents/Web/Toura-mulberry-acb3102/cli/mulberry.rb:5

from /Users/NIDMAC/Documents/Web/Toura-mulberry-acb3102/cli/bin/mulberry:5:in `require'

from /Users/NIDMAC/Documents/Web/Toura-mulberry-acb3102/cli/bin/mulberry:5

I tried to check the system for rails and looks like I don't have it. So I did this

NIDHI-TAREs-MacBook:Web NIDMAC$ rails --version

Rails is not currently installed on this system. To get the latest version, simply type:

    $ sudo gem install rails

You can then rerun your "rails" command.

-MacBook:Web NIDMAC$ gem --version

1.3.5

-MacBook:Web NIDMAC$ rake --version

rake, version 0.8.7

The real question is, gem install rails doesn't return at all. Is this command broken? Is there  a better way to install rails ?