While installing RubyGems 1.7.2 it installed 1.3.5 instead

I just went through the install of Ruby 1.7.2 and for some reason I ended up with version 1.3.5

So now when I do this command:

gem --version
1.3.5
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My thinking is that I have to purge the 1.3.5 version and install the 1.7.2 fresh correct?

The funny thing is that I do have 1.7.2 on my file system at

/usr/local/rubygems-1.7.2

How do I un-confuse the system into seeing the right version?

The whole issue is stemming when I try to install rails by doing this:

gem install rails
ERROR:  Error installing rails:
    bundler requires RubyGems version >= 1.3.6

---

Try following these steps:

• Remove version 1.7.2
• sudo apt-get --purge remove rubygems to remove the 1.3 version
• Now re-install 1.7.2 using the downloaded package you had before

---

Try running which gem to see where the gem is referencing. You might need to re-link gem to the new one.

Or you can try to upgrade using gem update --system