Ruby on Rails

Hello everybody, i'm a long time watcher of these forums first time
poster.

I wanted to start getting into rails and have a play, I found a very
useful guide on the Internet detailing the install process for Ubuntu
10.04, after the install and setup process which seem to complete OK, i
went ahead and started my first project, however when I go to start the
server I get this message?

root@server:/home/code/blog# rails script/server
Could not find gem 'sqlite3-ruby (>= 0, runtime)' in any of the gem
sources.
Try running `bundle install`.
Which I thought was very strange, I have tried running
root@server:/home/code/blog# bundle install
Fetching source index for http://rubygems.org/
Using rake (0.8.7)
Using abstract (1.0.0)
Using activesupport (3.0.0)
Using builder (2.1.2)
Using i18n (0.4.1)
Using activemodel (3.0.0)
Using erubis (2.6.6)
Using rack (1.2.1)
Using rack-mount (0.6.13)
Using rack-test (0.5.4)
Using tzinfo (0.3.23)
Using actionpack (3.0.0)
Using mime-types (1.16)
Using polyglot (0.3.1)
Using treetop (1.4.8)
Using mail (2.2.5)
Using actionmailer (3.0.0)
Using arel (1.0.1)
Using activerecord (3.0.0)
Using activeresource (3.0.0)
Using bundler (1.0.0)
Using thor (0.14.0)
Using railties (3.0.0)
Using rails (3.0.0)
Installing sqlite3-ruby (1.3.1) with native extensions
/usr/local/lib/site_ruby/1.8/rubygems/installer.rb:483:in
`build_extensions': ERROR: Failed to build gem native extension.
(Gem::Installer::ExtensionBuildError)
/usr/bin/ruby1.8 extconf.rb
extconf.rb:3:in `require': no such file to load -- mkmf (LoadError)
from extconf.rb:3

Gem files will remain installed in
/usr/lib/ruby/gems/1.8/gems/sqlite3-ruby-1.3.1 for inspection.
Results logged to
/usr/lib/ruby/gems/1.8/gems/sqlite3-ruby-1.3.1/ext/sqlite3/gem_make.out
from /usr/local/lib/site_ruby/1.8/rubygems/installer.rb:446:in
`each'
from /usr/local/lib/site_ruby/1.8/rubygems/installer.rb:446:in
`build_extensions'
from /usr/local/lib/site_ruby/1.8/rubygems/installer.rb:198:in
`install'
from
/usr/lib/ruby/gems/1.8/gems/bundler-1.0.0/lib/bundler/source.rb:100:in
`install'
from
/usr/lib/ruby/gems/1.8/gems/bundler-1.0.0/lib/bundler/installer.rb:55:in
`run'
from
/usr/lib/ruby/gems/1.8/gems/bundler-1.0.0/lib/bundler/spec_set.rb:12:in
`each'
from
/usr/lib/ruby/gems/1.8/gems/bundler-1.0.0/lib/bundler/spec_set.rb:12:in
`each'
from
/usr/lib/ruby/gems/1.8/gems/bundler-1.0.0/lib/bundler/installer.rb:44:in
`run'
from
/usr/lib/ruby/gems/1.8/gems/bundler-1.0.0/lib/bundler/installer.rb:8:in
`install'
from
/usr/lib/ruby/gems/1.8/gems/bundler-1.0.0/lib/bundler/cli.rb:217:in
`install'
from
/usr/lib/ruby/gems/1.8/gems/bundler-1.0.0/lib/bundler/vendor/thor/task.rb:22:in
`send'
from
/usr/lib/ruby/gems/1.8/gems/bundler-1.0.0/lib/bundler/vendor/thor/task.rb:22:in
`run'
from
/usr/lib/ruby/gems/1.8/gems/bundler-1.0.0/lib/bundler/vendor/thor/invocation.rb:118:in
`invoke_task'
from
/usr/lib/ruby/gems/1.8/gems/bundler-1.0.0/lib/bundler/vendor/thor.rb:246:in
`dispatch'
from
/usr/lib/ruby/gems/1.8/gems/bundler-1.0.0/lib/bundler/vendor/thor/base.rb:389:in
`start'
from /usr/lib/ruby/gems/1.8/gems/bundler-1.0.0/bin/bundle:13
from /usr/bin/bundle:19:in `load'
from /usr/bin/bundle:19

Does this message make any sense to anyone? Hope someone can help,
thanks for looking!
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