Can't generate new app with Rails 3.0.6 or 3.0.7

When I try to generate a new app with Rails 3.0.6 or 3.0.7 installed I just get the instructions for using the rails command. For some reason Rails seems to think that I have typed in the wrong syntax (which I haven't, of course). Everything works fine in 3.0.5 or lower, though. I run Ruby 1.9.2 and Ubuntu 10.04.

rails new app

Will result in:

Usage:
  rails new APP_PATH [options]

Options:
  -r, [--ruby=PATH]           # Path to the Ruby binary of your choice
                              # Default: /usr/local/bin/ruby
  -d, [--database=DATABASE]   # Preconfigure for selected database (options: mysql/oracle/postgresql/sqlite3/frontbase/ibm_db)
                              # Default: sqlite3
  -b, [--builder=BUILDER]     # Path to an application builder (can be a filesystem path or URL)
  -m, [--template=TEMPLATE]   # Path to an application template (can be a filesystem path or URL)
      [--dev]                 # Setup the application with Gemfile pointing to your Rails checkout
      [--edge]                # Setup the application with Gemfile pointing to Rails repository
      [--skip-gemfile]开发者_开发问答        # Don't create a Gemfile
  -O, [--skip-active-record]  # Skip Active Record files
  -T, [--skip-test-unit]      # Skip Test::Unit files
  -J, [--skip-prototype]      # Skip Prototype files
  -G, [--skip-git]            # Skip Git ignores and keeps

Runtime options:
  -f, [--force]    # Overwrite files that already exist
  -p, [--pretend]  # Run but do not make any changes
  -q, [--quiet]    # Supress status output
  -s, [--skip]     # Skip files that already exist

Rails options:
  -v, [--version]  # Show Rails version number and quit
  -h, [--help]     # Show this help message and quit

Description:
    The 'rails new' command creates a new Rails application with a default
    directory structure and configuration at the path you specify.

Example:
    rails new ~/Code/Ruby/weblog

    This generates a skeletal Rails installation in ~/Code/Ruby/weblog.
    See the README in the newly created application to get going.

try updating rubygems;

$ gem update --system

It seems running rvm rubygems current breaks this, at least for me. I ran the command as it was mentioned here that it would get rid of all the deprecation warnings, running gem update --system fixes it, and brings back the deprecation warnings.