Trouble installing rails from git

bundle install output

$ bundle install
Updating git://github.com/rails/rails.git
Fetching source index for http://rubygems.org/
Installing rake (0.9.0) 
Installing multi_json (1.0.3) 
Using activesupport (3.1.0.rc1) from git://github.com/rails/rails.git (at v3.1.0.rc1) 
Installing bcrypt-ruby (2.1.4) with native extensions 
Installing builder (3.0.0) 
Installing i18n (0.6.0) 
Using activemodel (3.1.0.rc1) from git://github.com/rails/rails.git (at v3.1.0.rc1) 
Installing erubis (2.7.0) 
Installing rack (1.3.0) 
Installing rack-cache (1.0.2) 
Installing rack-mount (0.8.1) 
Installing rack-test (0.6.0) 
Installing hike (1.0.0) 
Installing tilt (1.3.1) 
Installing sprockets (2.0.0.beta.8) 
Installing tzinfo (0.3.27) 
Using actionpack (3.1.0.rc1) from git://github.com/rails/rails.git (at v3.1.0.rc1) 
Installing mime-types (1.16) 
Installing polyglot (0.3.1) 
Installing treetop (1.4.9) 
Installing mail (2.3.0) 
Using actionmailer (3.1.0.rc1) from git://github.com/rails/rails.git (at v3.1.0.rc1) 
Installing arel (2.1.1) 
Using activerecord (3.1.0.rc1) from git://github.com/rails/rails.git (at v3.1.0.rc1) 
Using activeresource (3.1.0.rc1) from git://github.com/rails/rails.git (at v3.1.0.rc1) 
Using bundler (1.0.12) 
Installing coffee-script-source (1.1.1) 
Installing execjs (1.0.0) 
Installing coffee-script (2.2.0) 
Installing configuration (1.2.0) 
Installing orm_adapter (0.0.5) 
Installing warden (1.0.4)Installing devise (1.3.4) 
Installing diff-lcs (1.1.2) 
Installing launchy (0.4.0) 
Installing rest-client (1.6.1) 
Installing term-ansicolor (1.0.5) 
Installing heroku (2.1.4) 
Installing rack-ssl (1.3.2) 
Installing thor (0.14.6) 
Using railties (3.1.0.rc1) from git://github.com/rails/rails.git (at v3.1.0.rc1) 
Installing jquery-rails (1.0.7) 
Installing pg (0.11.0) with native extensions 
Using rails (3.1.0.rc1) from git://github.com/rails/rails.git (at v3.1.0.rc1) /home/ben/.rvm/rubies/ruby-1.9.2-p180/lib/ruby/site_ruby/1.9.1/rubygems/installer.rb:357:in `initialize': No such file or directory - /home/ben/.rvm/gems/ruby-1.9.2-p180@beer_run/bundler/gems/gems/rails-3.1.0.rc1/bin/rails (Errno::ENOENT)
        from /home/ben/.rvm/rubies/ruby-1.9.2-p180/lib/ruby/site_ruby/1.9.1/rubygems/installer.rb:357:in `open'
        from /home/ben/.rvm/rubies/ruby-1.9.2-p180/lib/ruby/site_ruby/1.9.1/rubygems/installer.rb:357:in `shebang'
        from /home/ben/.rvm/rubies/ruby-1.9.2-p180/lib/ruby/site_ruby/1.9.1/rubygems/installer.rb:448:in `app_script_text'
        from /home/ben/.rvm/rubies/ruby-1.9.2-p180/lib/ruby/site_ruby/1.9.1/rubygems/installer.rb:316:in `block in generate_bin_script'
        from /home/ben/.rvm/rubies/ruby-1.9.2-p180/lib/ruby/site_ruby/1.9.1/rubygems/installer.rb:315:in `open'
        from /home/ben/.rvm/rubies/ruby-1.9.2-p180/lib/ruby/site_ruby/1.9.1/rubygems/installer.rb:315:in `generate_bin_script'
        from /home/ben/.rvm/rubies/ruby-1.9.2-p180/lib/ruby/site_ruby/1.9.1/rubygems/installer.rb:296:in `block in generate_bin'
        from /home/ben/.rvm/rubies/ruby-1.9.2-p180/lib/ruby/site_ruby/1.9.1/rubygems/installer.rb:283:in `each'
        from /home/ben/.rvm/rubies/ruby-1.9.2-p180/lib/ruby/site_ruby/1.9.1/rubygems/installer.rb:283:in `generate_bin'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/gems/bundler-1.0.12/lib/bundler/source.rb:386:in `generate_bin'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/gems/bundler-1.0.12/lib/bundler/source.rb:442:in `generate_bin'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/gems/bundler-1.0.12/lib/bundler/source.rb:547:in `install'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/gems/bundler-1.0.12/lib/bundler/installer.rb:55:in `block in run'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/gems/bundler-1.0.12/lib/bundler/spec_set.rb:12:in `block in each'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/gems/bundler-1.0.12/lib/bundler/spec_set.rb:12:in `each'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/gems/bundler-1.0.12/lib/bundler/spec_set.rb:12:in `each'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/gems/bundler-1.0.12/lib/bundler/installer.rb:44:in `run'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/gems/bundler-1.0.12/lib/bundler/installer.rb:8:in `install'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/gems/bundler-1.0.12/lib/bundler/cli.rb:225:in `install'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/gems/bundler-1.0.12/lib/bundler/vendor/thor/task.rb:22:in `run'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/gems/bundler-1.0.12/lib/bundler/vendor/thor/invocation.rb:118:in `invoke_task'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/gems/bundler-1.0.12/lib/bundler/vendor/thor.rb:246:in `dispatch'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/gems/bundler-1.0.12/lib/bundler/vendor/thor/base.rb:389:in `start'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/gems/bundler-1.0.12/bin/bundle:13:in `<top (required)>'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/bin/bundle:19:in `load'
        from /home/ben/.rvm/gems/ruby-1.9.2-p180@global/bin/bundle:19:in `<main>'

Gemfile

source 'http://rubygems.org'

gem 'rails',     :git => 'git://github.com/rails/rails.git', :tag => 'v3.1.0.rc1'

gem 'pg'

gem 'devise'
gem 'slim'
gem 'sass'
gem 'coffee-script'
gem 'jquery-rails'

group :development, :test do
  gem 'heroku'
  gem 'rspec-rails'
end

Note: I removed warnings from the output for clarity.

did you solve this one ben? i'm experiencing the same after updating rubygems to v1.8.4

I haven't messed with it with newer RCs of Rails. The above was with RubyGems 1.8.3.

tbh, i've gone back to rails 3.0.7 for a while!