configure w/ bundler & ruby-1.8.7-p334

New laptop for me and prep for updating Rails from 2.0.2 to 3+

Gemfile

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+source 'http://rubygems.org'
+
+gem 'rails', '2.0.2'
+
+# Bundle edge Rails instead:
+# gem 'rails',     :git => 'git://github.com/rails/rails.git'
+
+#gem 'sqlite3'
+gem 'mysql'
+# gem 'sorcery'
+# gem 'cancan'
+# gem "therubyracer",:require => "v8"
+
+gem 'rake'
+
+# To use ActiveModel has_secure_password
+# gem 'bcrypt-ruby', '~> 3.0.0'
+
+# Use unicorn as the web server
+# gem 'unicorn'
+
+# Deploy with Capistrano
+group :development do
+  gem 'capistrano'
+  gem 'capistrano-ext'
+  gem 'capistrano_colors', '>=0.5.3' #, :git => "git://github.com/gaslightsoftware/capistrano_colors.git"
+  # gem 'ruby-debug', '0.10.0'
+end
+
+# To use debugger
+# gem 'ruby-debug19', :require => 'ruby-debug'
+
+# group :development do
+#   gem 'heroku'
+#   gem 'taps'
+# #  gem 'mysql'
+# end
+
+# group :test do
+#   # Pretty printed test output
+#   gem 'turn', :require => false
+#   gem 'minitest'
+# end

Gemfile.lock

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+GEM
+  remote: http://rubygems.org/
+  specs:
+    actionmailer (2.0.2)
+      actionpack (= 2.0.2)
+    actionpack (2.0.2)
+      activesupport (= 2.0.2)
+    activerecord (2.0.2)
+      activesupport (= 2.0.2)
+    activeresource (2.0.2)
+      activesupport (= 2.0.2)
+    activesupport (2.0.2)
+    capistrano (2.9.0)
+      highline
+      net-scp (>= 1.0.0)
+      net-sftp (>= 2.0.0)
+      net-ssh (>= 2.0.14)
+      net-ssh-gateway (>= 1.1.0)
+    capistrano-ext (1.2.1)
+      capistrano (>= 1.0.0)
+    capistrano_colors (0.5.5)
+    highline (1.6.11)
+    mysql (2.8.1)
+    net-scp (1.0.4)
+      net-ssh (>= 1.99.1)
+    net-sftp (2.0.5)
+      net-ssh (>= 2.0.9)
+    net-ssh (2.3.0)
+    net-ssh-gateway (1.1.0)
+      net-ssh (>= 1.99.1)
+    rails (2.0.2)
+      actionmailer (= 2.0.2)
+      actionpack (= 2.0.2)
+      activerecord (= 2.0.2)
+      activeresource (= 2.0.2)
+      activesupport (= 2.0.2)
+      rake (>= 0.7.2)
+    rake (0.9.2.2)
+
+PLATFORMS
+  ruby
+
+DEPENDENCIES
+  capistrano
+  capistrano-ext
+  capistrano_colors (>= 0.5.3)
+  mysql
+  rails (= 2.0.2)
+  rake