Rails generate scaffold creates in wrong places

Question

On a fresh project, rails generate behaves strangely. I did:

rails new pm
cd pm/

rake db:migrate

rails generate controller home index

rails generate scaffold Entry title:string content:text date:date

Now my dir looks like this: What went wrong?

ls
app       date:date  generate  log        README    title:string
config        db     home        scaffold   tmp
content:text  doc    index     public     script    vendor
controller    Entry  lib       Rakefile   test

My system is an Ubuntu lucid, ruby-1.8.

$ gem -v 
1.3.5

Answer 1

just to mark it answered:

For now I installed rubygems manually and installed rails-3 via gem