$PATH confusion Postgres and Rails on OSX Lion

Rails and all my gem files + homebrew installs have been working fine up until this point. I ran ``` homebrew install postgresql ``` and was following the prompts pretty much as indicated in this video but it kept giving me error messages saying there is a server already running. I checked ``` which psql ``` in the terminal and it reported a ``` usr/bin ``` location rather than ``` usr/local/bin ``` indicating I was using the postgres that comes with osx not the new homebrew install. When I attempted to start the database server I recieved an error message saying the server is already running. There is a mention of this error message in the postgres help documentation but no real working solution. Attempting brew doctor confirmed that i needed to change my PATH in .bash_profile. I came across this little snippet here on stack overflow for the .bash_profile edit. ``` export PATH=/usr/local/bin:/usr/bin:/bin:/usr/sbin:/sbin:/opt/local/bin ``` I saved the file and managed to get postgres up and running fine but then when I went to start a new rails app. ``` rails new blog -d postgresql ``` it says ``` Rails is not currently installed on this system. To get the latest version, simply type: $ sudo gem install rails You can then rerun your "rails" command. ``` Any attempt to install does not work until i change the bash_profile file back to what it was before. If I change it back postgres has the same issue again saying there is already a server running. Also I thought it might be a launch agent or something but I don't think there are any that are set up. I figure either something is installed in the wrong place or I have to add something to the .bash_profile?