rails -v errors when setting up rvm

Question

Hi,

I am trying to set up an environment as per this tutorial http://railstutorial.org/book#sec:1.2.2.3 however I get the below error when running 'rails -v'

bash-3.2$ rails -v
/Users/sandbox1/.rvm/rubies/ruby-1.9.2-p0/lib/ruby/1.9.1/rubygems.rb:762:in `report_activate_error': Could not find RubyGem rails (>= 0) (Gem::LoadError)
        from /Users/sandbox1/.rvm/rubies/ruby-1.9.2-p0/lib/ruby/1.9.1/rubygems.rb:219:in `activate'
        from /Users/sandbox1/.rvm/rubies/ruby-1.9.2-p0/lib/ruby/1.9.1/rubygems.rb:1065:in `gem'
        from /usr/bin/rails:18:in `<main>'

Has anyone had this before?