Problem starting server

I get the following error when trying to start the server. Can anyone
help me on how to resolve this?

rajeev@osibuild7:~/Desktop/logo/logo$ script/server
** Ruby version is not up-to-date; loading cgi_multipart_eof_fix
=> Booting Mongrel (use ‘script/server webrick’ to force WEBrick)
=> Rails application starting on http://0.0.0.0:3000
=> Call with -d to detach
=> Ctrl-C to shutdown server
** Starting Mongrel listening at 0.0.0.0:3000
** Starting Rails with development environment…
Exiting
/var/lib/gems/1.8/gems/rails-2.0.1/lib/commands/servers/mongrel.rb:16:
warning: already initialized constant OPTIONS
/var/lib/gems/1.8/gems/rails-2.0.1/lib/commands/servers/mongrel.rb:19:
undefined method options' for []:Array (NoMethodError) from /usr/lib/ruby/1.8/rubygems/custom_require.rb:33:in gem_original_require’
from /usr/lib/ruby/1.8/rubygems/custom_require.rb:33:in
require' from ./script/../config/../vendor/rails/activesupport/lib/active_support/dependencies.rb:496:in require’
from
./script/…/config/…/vendor/rails/activesupport/lib/active_support/dependencies.rb:343:in
new_constants_in' from ./script/../config/../vendor/rails/activesupport/lib/active_support/dependencies.rb:496:in require’
from
./script/…/config/…/vendor/rails/railties/lib/commands/server.rb:39
from script/server:5:in `require’
from script/server:5

Cheers