Path problems

%>rails expense
/usr/local/bin/rails:19: undefined method `bin_path’ for Gem:Module
(NoMethodError).

I keep getting the above error after installing rails. I have gone
through every
step at hivelogic. It worked once and ever since I have been getting the
above error.

I understand the issue is that the path is not configured properly…
on typing echo $PATH i get:
/bin:/sbin:/usr/bin:/usr/sbin:/usr/local/bin:/bin:/sbin:/usr/bin:/usr/sbin

but when I execute <prompt%>. ~/.bash_login,
on typing echo $PATH i get:

/usr/local/bin:/usr/local/sbin:/usr/local/mysql/bin:/bin:/sbin:/usr/bin:/usr/sbin:/usr/local/bin:/bin:/sbin:/usr/bin:/usr/sbin

help would be much appreciated.

Thanks.