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I installed Bundler on a pre-Rails 3 application and am trying to use it to install gems. My Gemfile contains the following lines:

source :rubygems
[...]
gem "RubyInline", "3.8.1"

However, when I run bundle install I get this error:

Fetching source index for http://rubygems.org/
Could not find gem 'RubyInline', required by 'memcache-client (= 1.6.3)', in any of the sources

The gem appears on the rubygems website:

http://rubygems.org/gems/RubyInline

Why is it giving me an error then?