I'm a noob at this, so please be kind.
I had the same issue and after fighting with it for a bit, found out that sqlite3 needs to be installed properly before it works. I think the reason is that the database.yml in the config directory that is generated keeps referring to sqlite3. However, if you look a the code downloaded from this website for the book, the database.yml has changed to refer to mysql, the installed database per the book. Perhaps if you change the database.yml with the new one, the application would work.
But I'm just a noob at this. Others might know more.