Ruby on Rails

My current ruby version is ruby 2.0.0p247 (2013-06-27 revision 41674) [x86_64-darwin13.0.0] and rails version is 4.0.0

Every time I run any rails command I get following message first:

    /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247@global/gems/bundler- 1.3.5/lib/bundler/runtime.rb:216: warning: Insecure world writable dir /usr/local in PATH, mode 040777

I was able to create new rails app, but when I start the server using

    rails server or rails s

I get following message ---

    /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247@global/gems/bundler-1.3.5/lib/bundler/runtime.rb:216: warning: Insecure world writable dir /usr/local in PATH, mode 040777  => Booting WEBrick  => Rails 4.0.0 application starting in development on http://0.0.0.0:3000  => Run `rails server -h` for more startup options  => Ctrl-C to shutdown server  Exiting  /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/railties-4.0.0/lib/rails/application/routes_reloader.rb:10:in `rescue in execute_if_updated': Rails::Application::RoutesReloader#execute_if_updated delegated to updater.execute_if_updated, but updater is nil: #<Rails::Application::RoutesReloader:0x007f9019eec2c0 @paths=["/Users/aniruddhabarapatre1/RubyRails/profile/config/routes.rb"], @route_sets=[#<ActionDispatch::Routing::RouteSet:0x007f9019d795c8>]> (RuntimeError)  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/railties-4.0.0/lib/rails/application/routes_reloader.rb:6:in `execute_if_updated'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/railties-4.0.0/lib/rails/application/finisher.rb:69:in `block in <module:Finisher>'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/railties-4.0.0/lib/rails/initializable.rb:30:in `instance_exec'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/railties-4.0.0/lib/rails/initializable.rb:30:in `run'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/railties-4.0.0/lib/rails/initializable.rb:55:in `block in run_initializers'  from /Users/aniruddhabarapatre1/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/2.0.0/tsort.rb:150:in `block in tsort_each'  from /Users/aniruddhabarapatre1/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/2.0.0/tsort.rb:183:in `block (2 levels) in each_strongly_connected_component'  from /Users/aniruddhabarapatre1/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/2.0.0/tsort.rb:219:in `each_strongly_connected_component_from'  from /Users/aniruddhabarapatre1/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/2.0.0/tsort.rb:182:in `block in each_strongly_connected_component'  from /Users/aniruddhabarapatre1/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/2.0.0/tsort.rb:180:in `each'  from /Users/aniruddhabarapatre1/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/2.0.0/tsort.rb:180:in `each_strongly_connected_component'  from /Users/aniruddhabarapatre1/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/2.0.0/tsort.rb:148:in `tsort_each'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/railties-4.0.0/lib/rails/initializable.rb:54:in `run_initializers'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/railties-4.0.0/lib/rails/application.rb:215:in `initialize!'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/railties-4.0.0/lib/rails/railtie/configurable.rb:30:in `method_missing'  from /Users/aniruddhabarapatre1/RubyRails/profile/config/environment.rb:5:in `<top (required)>'  from /Users/aniruddhabarapatre1/RubyRails/profile/config.ru:3:in `require'  from /Users/aniruddhabarapatre1/RubyRails/profile/config.ru:3:in `block in <main>'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/rack-1.5.2/lib/rack/builder.rb:55:in `instance_eval'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/rack-1.5.2/lib/rack/builder.rb:55:in `initialize'  from /Users/aniruddhabarapatre1/RubyRails/profile/config.ru:in `new'  from /Users/aniruddhabarapatre1/RubyRails/profile/config.ru:in `<main>'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/rack-1.5.2/lib/rack/builder.rb:49:in `eval'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/rack-1.5.2/lib/rack/builder.rb:49:in `new_from_string'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/rack-1.5.2/lib/rack/builder.rb:40:in `parse_file'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/rack-1.5.2/lib/rack/server.rb:277:in `build_app_and_options_from_config'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/rack-1.5.2/lib/rack/server.rb:199:in `app'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/railties-4.0.0/lib/rails/commands/server.rb:48:in `app'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/rack-1.5.2/lib/rack/server.rb:314:in `wrapped_app'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/railties-4.0.0/lib/rails/commands/server.rb:75:in `start'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/railties-4.0.0/lib/rails/commands.rb:78:in `block in <top (required)>'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/railties-4.0.0/lib/rails/commands.rb:73:in `tap'  from /Users/aniruddhabarapatre1/.rvm/gems/ruby-2.0.0-p247/gems/railties-4.0.0/lib/rails/commands.rb:73:in `<top (required)>'  from bin/rails:4:in `require'  from bin/rails:4:in `<main>'

I'm stuck on this since last 2 days and would greatly appreciate any help. Just want to start with Rails and create some apps.
But this initial setup is frustrating. 

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