Also a newbie here, trying to get rails with the launch of heroku. Today I faced the same problem: first the problem “Could not find RubyGem railties”, and then after removing Ruby 1.9.2 the problem with heroku no longer works. I found 2 paths around it, but not sure if one of them is magnificent.
Do not remove the ruby version that comes with the dashboard. Instead either
(1): remove it from PATH. For me, installing the toolbelt added c: \ program files \ ruby1.9.3 to my system PATH variable. I already had c: \ ruby193 (where I installed ruby earlier) in the PATH user variable. After you removed the one added by toolbelt from PATH, everything began to work. (note: c: \ ruby193 should be placed before c: \ program files \ heroku \ bin in the PATH system variable, otherwise it will not work)
(2): as an alternative, I moved c: \ ruby193 from my user PATH to my PATH system. Reinstall toolbelt, and now both rubies and heroics work. But I have both versions of ruby in my PATH variable.
Not sure if that's cool anyway, because I suspect I now have two versions of rubies that are installed and used depending on what I'm doing. But at least he allowed me to move on to the next problem, now I'm stuck in an attempt to install plugins for the hero.
I thought that a ruby on rails should ease the situation. It was a 4 day attempt to tune 30 different new tools (end rant)
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