##Run "which -a gem". Do you see multiple unique locations? If so, gem list using the full path to gem. E.g. "/usr/bin/gem list" and "/usr/local/bin/gem list".  My guess is that you'll see that one of the lists has i18n and the other doesn't.

##RESULT:  i18n in both places

Last login: Thu Apr 14 08:59:17 on ttys000
kevindewalt@new-host-4:~/Dropbox/ClaimAway2$ (master) $ which -a gem
/usr/local/bin/gem
/usr/local/bin/gem
/usr/bin/gem
/usr/local/bin/gem
kevindewalt@new-host-4:~/Dropbox/ClaimAway2$ (master) $ /usr/local/bin/gem list

*** LOCAL GEMS ***

abstract (1.0.0)
actionmailer (3.0.6, 3.0.4, 3.0.0)
actionpack (3.0.6, 3.0.4, 3.0.0)
activemodel (3.0.6, 3.0.4, 3.0.0)
activerecord (3.0.6, 3.0.4, 3.0.0)
activeresource (3.0.6, 3.0.4, 3.0.0)
activesupport (3.0.6, 3.0.4, 3.0.0)
arel (2.0.9, 1.0.1)
aws-s3 (0.6.2)
bcrypt-ruby (2.1.2)
builder (2.1.2)
bundler (1.0.12, 1.0.10)
cancan (1.4.0)
columnize (0.3.1)
devise (1.1.3)
encryptor (1.1.1)
erubis (2.6.6)
factory_girl (1.3.2)
factory_girl_rails (1.0)
i18n (0.5.0, 0.4.2)
jquery-rails (0.2.7)
linecache (0.43)
mail (2.2.15)
mime-types (1.16)
mysql2 (0.2.6)
paperclip (2.3.3)
polyglot (0.3.1)
rack (1.2.2)
rack-mount (0.6.14, 0.6.13)
rack-test (0.5.7)
rails (3.0.6, 3.0.0)
railties (3.0.6, 3.0.4, 3.0.0)
rake (0.8.7)
rdoc (2.5.11)
rdoc-data (2.5.3)
ruby-debug (0.10.3)
ruby-debug-base (0.10.3)
rubygems-update (1.7.2, 1.5.2)
shoulda (2.11.3)
sqlite3 (1.3.3)
sqlite3-ruby (1.3.1)
thor (0.14.6)
treetop (1.4.9)
tzinfo (0.3.26, 0.3.25)
warden (0.10.7)
xml-simple (1.0.12)
kevindewalt@new-host-4:~/Dropbox/ClaimAway2$ (master) $ /usr/bin/gem list

*** LOCAL GEMS ***

abstract (1.0.0)
actionmailer (3.0.0, 2.3.5, 1.3.6)
actionpack (3.0.0, 2.3.5, 1.13.6)
actionwebservice (1.2.6)
activemodel (3.0.0)
activerecord (3.0.0, 2.3.5, 1.15.6)
activeresource (3.0.0, 2.3.5)
activesupport (3.0.0, 2.3.5, 1.4.4)
acts_as_ferret (0.4.3)
arel (1.0.1)
aws-s3 (0.6.2)
bcrypt-ruby (2.1.2)
builder (2.1.2)
bundler (1.0.7)
cancan (1.4.0)
capistrano (2.5.2)
cgi_multipart_eof_fix (2.5.0)
columnize (0.3.1)
configuration (1.2.0)
daemons (1.0.10)
devise (1.1.3)
dnssd (0.6.0)
encryptor (1.1.1)
erubis (2.6.6)
factory_girl (1.3.2)
factory_girl_rails (1.0)
fastthread (1.0.1)
fcgi (0.8.7)
ferret (0.11.6)
gem_plugin (0.2.3)
heroku (1.13.7)
highline (1.5.0)
hpricot (0.6.164)
i18n (0.4.1)
json_pure (1.4.6)
launchy (0.3.7)
libxml-ruby (1.1.2)
linecache (0.43)
mail (2.2.7)
mime-types (1.16)
mongrel (1.1.5)
mysql2 (0.2.6)
needle (1.3.0)
net-scp (1.0.1)
net-sftp (2.0.1, 1.1.1)
net-ssh (2.0.4, 1.1.4)
net-ssh-gateway (1.0.0)
paperclip (2.3.3)
polyglot (0.3.1)
rack (1.0.1)
rails (3.0.0, 2.3.5, 1.2.6)
railties (3.0.0)
rake (0.8.7, 0.8.3)
RedCloth (4.1.1)
rest-client (1.6.1)
ruby-debug (0.10.3)
ruby-debug-base (0.10.3)
ruby-openid (2.1.2)
ruby-yadis (0.3.4)
rubygems-update (1.3.7)
rubynode (0.1.5)
shoulda (2.11.3)
sqlite3-ruby (1.2.4)
termios (0.9.4)
thor (0.14.3)
treetop (1.4.9, 1.4.8)
warden (0.10.7)
xml-simple (1.0.12)
xmpp4r (0.4)

##Run "which" on rails, bundler, and gem. Run "head -1" on each of those paths. Does the ruby path match in all of them?

##RESULT: Yes, it matches

kevindewalt@new-host-4:~/Dropbox/ClaimAway2$ (master) $ which rails
/usr/local/bin/rails
kevindewalt@new-host-4:~/Dropbox/ClaimAway2$ (master) $ head -1 /usr/local/bin/rails
#!/usr/local/bin/ruby
kevindewalt@new-host-4:~/Dropbox/ClaimAway2$ (master) $ which gem
/usr/local/bin/gem
kevindewalt@new-host-4:~/Dropbox/ClaimAway2$ (master) $ head -1 /usr/local/bin/gem
#!/usr/local/bin/ruby
kevindewalt@new-host-4:~/Dropbox/ClaimAway2$ (master) $ which bundle
/usr/local/bin/bundle
kevindewalt@new-host-4:~/Dropbox/ClaimAway2$ (master) $ head -1 /usr/local/bin/bundle
#!/usr/local/bin/ruby

##Another suspect is the "sudo" command. You may also want to run the "which" command via sudo, e.g. sudo sh -c 'which gem'

##RESULT:  Not totally sure what I'm looking for but this looks ok.

kevindewalt@new-host-4:~/Dropbox/ClaimAway2$ (master) $ sudo sh -c 'which gem'
Password:
/usr/local/bin/gem