Ruby on Rails

Hi, I'm new to rails so wonder if you guys can help out, most appreciated.

Problem: When creating a new project or start rails server this error occurs: No such file or directory for fresh_rakefile

[snip]

No such file or directory - /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/gems/1.8/gems/rails-2.3.18/lib/rails_generator/generators/applications/app/../../../../../fresh_rakefile

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The folder simple_cms was created but I wonder why error/warning pops up as  No such file or directory .../fresh_rakefile

Specs: 

Running on Mac Os X 10.6.8 Snow Leopard.

Lasted XCode installed.

MySQL initialized 

ruby -v: ruby 2.0.0p247 (2013-06-27 revision 41674) [x86_64-darwin10.8.0]

rails -v: Rails 2.3.18

Gem List Installed as follows:

gem list

*** LOCAL GEMS ***

actionmailer (4.0.1)

actionpack (4.0.1)

activemodel (4.0.1)

activerecord (4.0.1)

activerecord-deprecated_finders (1.0.3)

activesupport (4.0.1)

arel (4.0.1)

atomic (1.1.14)

bigdecimal (1.2.0)

builder (3.1.4)

bundler (1.3.5)

daemon_controller (1.1.7)

erubis (2.7.0)

hike (1.2.3)

i18n (0.6.5)

io-console (0.4.2)

json (1.8.1, 1.7.7)

mail (2.5.4)

mime-types (1.25)

minitest (5.0.8, 4.3.2)

multi_json (1.8.2)

mysql2 (0.3.14)

passenger (4.0.25)

polyglot (0.3.3)

psych (2.0.1, 2.0.0)

rack (1.5.2)

rack-test (0.6.2)

rails (4.0.1)

railties (4.0.1)

rake (0.9.6)

rdoc (4.0.0)

rubygems-update (2.1.11)

sprockets (2.10.0)

sprockets-rails (2.0.1)

test-unit (2.5.5, 2.0.0.0)

thor (0.18.1)

thread_safe (0.1.3)

tilt (1.4.1)

treetop (1.4.15)

tzinfo (0.3.38)