Tuning RubyMine IDE

This happens for every single project that I have tried: If I use terminal and say bundle install or rake db:migrate , it works fine, can see my website , works completely fine. But If I open project in RubyMine and want to do the same tasks it gives me all sorts or errors. I just copy paster some of them as an example. I am sure there is some small project setting that should be set somewhere. But don't know what and where Note: There is a "edit configuration" that is always set on Rails 1.8 and although I change it to Rails 1.9 , still makes no difference. I am running the latest version of RubyMine on Mac. ``` /usr/bin/ruby -e $stdout.sync=true;$stderr.sync=true;load($0=ARGV.shift) /usr/bin/rake db:migrate /Users/JonyIve/.gem/ruby/1.8/gems/bundler-1.2.3/lib/bundler/spec_set.rb:90:in `materialize': Could not find i18n-0.6.1 in any of the sources (Bundler::GemNotFound) from /Users/JonyIve/.gem/ruby/1.8/gems/bundler-1.2.3/lib/bundler/spec_set.rb:83:in `map!' from /Users/JonyIve/.gem/ruby/1.8/gems/bundler-1.2.3/lib/bundler/spec_set.rb:83:in `materialize' from /Users/JonyIve/.gem/ruby/1.8/gems/bundler-1.2.3/lib/bundler/definition.rb:113:in `specs' from /Users/JonyIve/.gem/ruby/1.8/gems/bundler-1.2.3/lib/bundler/definition.rb:158:in `specs_for' from /Users/JonyIve/.gem/ruby/1.8/gems/bundler-1.2.3/lib/bundler/definition.rb:147:in `requested_specs' from /Users/JonyIve/.gem/ruby/1.8/gems/bundler-1.2.3/lib/bundler/environment.rb:23:in `requested_specs' from /Users/JonyIve/.gem/ruby/1.8/gems/bundler-1.2.3/lib/bundler/runtime.rb:11:in `setup' from /Users/JonyIve/.gem/ruby/1.8/gems/bundler-1.2.3/lib/bundler.rb:116:in `setup' from /Users/JonyIve/.gem/ruby/1.8/gems/bundler-1.2.3/lib/bundler/setup.rb:17 ``` EDIT: After running bundler install, from IDE : ``` /usr/bin/ruby -e $stdout.sync=true;$stderr.sync=true;load($0=ARGV.shift) /Users/JonyIve/.gem/ruby/1.8/bin/bundle install Fetching gem metadata from https://rubygems.org/......... Fetching gem metadata from https://rubygems.org/.. sudo: no tty present and no askpass program specified Gem::Exception: Cannot load gem at [/Library/Ruby/Gems/1.8/cache/rake-10.0.3.gem] in /Users/JonyIve/Downloads/code-1/rails32/depot_c An error occurred while installing rake (10.0.3), and Bundler cannot continue. Make sure that `gem install rake -v '10.0.3'` succeeds before bundling. ```