For the 'bundle install' step to work, I had to put the following in
my ~/.bashrc at the end:

  export GEM_HOME=/var/lib/gems/1.8/gems/
  export PATH=/var/lib/gems/1.8/bin:$PATH

Without these, I get:

  $ bundle install
  bash: bundle: command not found

It may help to update the documentation with this information.