donp@tower ~ $ sudo gem install rails
ERROR:  While executing gem ... (Gem::GemNotFoundException)
    Could not find rails (> 0) in the repository


donp@tower ~ $ sudo gem update
Updating installed gems...
Gems: [] updated


donp@tower ~ $ sudo gem list

*** LOCAL GEMS ***

actionmailer (1.2.1)
    Service layer for easy email delivery and testing.

actionpack (1.12.1)
    Web-flow and rendering framework putting the VC in MVC.

actionwebservice (1.1.2)
    Web service support for Action Pack.

activerecord (1.14.2)
    Implements the ActiveRecord pattern for ORM.

activesupport (1.3.1)
    Support and utility classes used by the Rails framework.

fcgi (0.8.6.1)
    FastCGI ruby binding.

postgres-pr (0.4.0)
    A pure Ruby interface to the PostgreSQL (>= 7.4) database

rails (1.1.2)
    Web-application framework with template engine, control-flow layer,
    and ORM.

rake (0.7.1)
    Ruby based make-like utility.

rmagick (1.11.1)
    RMagick is an interface between the Ruby programming language and
    the ImageMagick and GraphicsMagick image processing libraries.

ruby-openid (1.0.1)
    A library for consuming and serving OpenID identities.

ruby-yadis (0.3)
    A library for performing Yadis service discovery

rubygems-update (0.9.0)
    RubyGems Update GEM

sources (0.0.1)
    This package provides download sources for remote gem installation

sqlite3-ruby (1.1.0)
    SQLite3/Ruby is a module to allow Ruby scripts to interface with a
    SQLite3 database.

donp@tower ~ $ sudo gem update --debug
Exception `Errno::ENOENT' at /usr/lib/ruby/site_ruby/1.8/rubygems/config_file.rb:50 - No such file or directory - /home/donp/.gemrc
Updating installed gems...
Exception `LoadError' at /usr/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:27 - no such file to load -- sources
Gems: [] updated