Rails undefined method 'groups' for rails module

Working on Mac OS X, trying to learn rails. When I type: "rails generate Scaffold User name:string email:string", I get the following error:

    /Users/dnf1991/rails_projects/demo_app/config/application.rb:7:in `<top (required)>': undefined method `groups' for Rails:Module (NoMethodError)
from /Users/dnf1991/.rvm/gems/ruby-1.9.2-p290@rails3tutorial/gems/railties-3.0.9/lib/rails/commands.rb:15:in `require'
from /Users/dnf1991/.rvm/gems/ruby-1.9.2-p290@rails3tutorial/gems/railties-3.0.9/lib/rails/commands.rb:15:in `<top (required)>'
from script/开发者_开发百科rails:6:in `require'
from script/rails:6:in `<main>'

Any thoughts?

I had this exact same problem following the same guide you are. I deleted the project and re-generated, and did not follow the instructions to modify gemfile in the project to use 1.3.3 version of sql (and didn't comment out the other default inclusions) and the error went away.