Hi shbrat,
does <mylocaldir> contain a space (e.g. C:\Program Files\Ruby)? If so, you may have hit
a RubyGems bug.
In that case, I suggest that you uninstall Ruby and reinstall it in a directory path without spaces (e.g., C:\Ruby). Alternatively, you can try the workaround described within the bug report I linked to above.
Please let me know if this fixes your problem.
Cheers,
Antonio
PS: The book is probably easier to follow with Rails 2.2.2. You can install it by running:
Code:
gem install rails -v=2.2.2