configuration.rb problems; failed rake.

Question

Thank you in Advance! I'm using Capistrano to cap deploy:migrations.

Two commands within the environment.rb file are causing some problems:

config.gem "coderay"
config.gem "RedCloth"

An SSH into the Dreamhost server:

gem: /usr/bin/gem1.8 /usr/bin/gem /usr/share/man/man1/gem.1.gz
[kinshasa]$ which gem
/usr/bin/gem
[kinshasa]$ gem list

coderay (0.9.3)
RedCloth (4.2.3, 3.0.4)

Truncated Cap deploy:migrations error:

latest => /home/fogonthedowns/blog.justinzollars.com/releases/20100711230258
  * executing "cd /home/fogonthedowns/blog.justinzollars.com/releases/20100711230258; rake RAILS_ENV=production  db:migrate"
    servers: ["blog.justinzollars.com"]
    [blog.justinzollars.com] executing command
 ** [out :: blog.justinzollars.com] Missing these required gems:
 ** [out :: blog.justinzollars.com] coderay
 ** [out :: blog.justinzollars.com] RedCloth
 ** [out :: blog.justinzollars.com] 
 ** [out :: blog.justinzollars.com] You're running:
 ** [out :: blog.justinzollars.com] ruby 1.8.7.72 at /usr/bin/ruby1.8
 ** [out :: blog.justinzollars.com] rubygems 1.3.6 at /home/fogonthedowns/.gem/ruby/1.8, /usr/lib/ruby/gems/1.8
 ** [out :: blog.justinzollars.com] 
 ** [out :: blog.justinzollars.com] Run `rake gems:install` to install the missing gems.
    command finished
failed: "sh -c 'cd /home/fogonthedowns/blog.justinzollars.com/releases/20100711230258; rake RAILS_ENV=production  db:migrate'" on blog.justinzollars.com

It appears I have the gems I need, although they are in a local folder. How do I solve this problem?