I'm having trouble running a gem, tabs on rails -v=1.3.2, in my rails 2.3.8 app. The gem is installed locally (Ubuntu 10.10) and I have config.gem "tabs_on_rails", :version=>"1.3.2" in environment.rb. This is the output I get when I run script/server:

loren@ubuntu:~/apps/medmentum$ script/server
=> Booting WEBrick
=> Rails 2.3.8 application starting on http://0.0.0.0:3000
no such file to load -- tabs_on_rails
/usr/lib/ruby/1.8/rubygems/custom_require.rb:36:in `gem_original_require'
/usr/lib/ruby/1.8/rubygems/custom_require.rb:36:in `require'
/var/lib/gems/1.8/gems/activesupport-2.3.8/lib/active_support/dependencies.rb:156:in `require'
/var/lib/gems/1.8/gems/activesupport-2.3.8/lib/active_support/dependencies.rb:521:in `new_constants_in'
/var/lib/gems/1.8/gems/activesupport-2.3.8/lib/active_support/dependencies.rb:156:in `require'
/var/lib/gems/1.8/gems/rails-2.3.8/lib/rails/gem_dependency.rb:215:in `load'
/var/lib/gems/1.8/gems/rails-2.3.8/lib/initializer.rb:307:in `load_gems'
/var/lib/gems/1.8/gems/rails-2.3.8/lib/initializer.rb:307:in `each'
/var/lib/gems/1.8/gems/rails-2.3.8/lib/initializer.rb:307:in `load_gems'
/var/lib/gems/1.8/gems/rails-2.3.8/lib/initializer.rb:164:in `process'
/var/lib/gems/1.8/gems/rails-2.3.8/lib/initializer.rb:113:in `send'
/var/lib/gems/1.8/gems/rails-2.3.8/lib/initializer.rb:113:in `run'
/home/loren/apps/medmentum/config/environment.rb:11
/usr/lib/ruby/1.8/rubygems/custom_require.rb:31:in `gem_original_require'
/usr/lib/ruby/1.8/rubygems/custom_require.rb:31:in `require'
/var/lib/gems/1.8/gems/activesupport-2.3.8/lib/active_support/dependencies.rb:156:in `require'
/var/lib/gems/1.8/gems/activesupport-2.3.8/lib/active_support/dependencies.rb:521:in `new_constants_in'
/var/lib/gems/1.8/gems/activesupport-2.3.8/lib/active_support/dependencies.rb:156:in `require'
/var/lib/gems/1.8/gems/rails-2.3.8/lib/commands/server.rb:84
/usr/lib/ruby/1.8/rubygems/custom_require.rb:31:in `gem_original_require'
/usr/lib/ruby/1.8/rubygems/custom_require.rb:31:in `require'
script/server:3
/var/lib/gems/1.8/gems/rails-2.3.8/lib/rails/plugin.rb:158:in `read': Permission denied - /var/lib/gems/1.8/gems/tabs_on_rails-1.3.2/rails/init.rb (Errno::EACCES)
    from /var/lib/gems/1.8/gems/rails-2.3.8/lib/rails/plugin.rb:158:in `evaluate_init_rb'
    from /var/lib/gems/1.8/gems/activesupport-2.3.8/lib/active_support/core_ext/kernel/reporting.rb:11:in `silence_warnings'
    from /var/lib/gems/1.8/gems/rails-2.3.8/lib/rails/plugin.rb:154:in `evaluate_init_rb'
    from /var/lib/gems/1.8/gems/rails-2.3.8/lib/rails/plugin.rb:48:in `load'
    from /var/lib/gems/1.8/gems/rails-2.3.8/lib/rails/plugin/loader.rb:38:in `load_plugins'
    from /var/lib/gems/1.8/gems/rails-2.3.8/lib/rails/plugin/loader.rb:37:in `each'
    from /var/lib/gems/1.8/gems/rails-2.3.8/lib/rails/plugin/loader.rb:37:in `load_plugins'
    from /var/lib/gems/1.8/gems/rails-2.3.8/lib/initializer.rb:369:in `load_plugins'
    from /var/lib/gems/1.8/gems/rails-2.3.8/lib/initializer.rb:165:in `process'
    from /var/lib/gems/1.8/gems/rails-2.3.8/lib/initializer.rb:113:in `send'
    from /var/lib/gems/1.8/gems/rails-2.3.8/lib/initializer.rb:113:in `run'
    from /home/loren/apps/medmentum/config/environment.rb:11
    from /usr/lib/ruby/1.8/rubygems/custom_require.rb:31:in `gem_original_require'
    from /usr/lib/ruby/1.8/rubygems/custom_require.rb:31:in `require'
    from /var/lib/gems/1.8/gems/activesupport-2.3.8/lib/active_support/dependencies.rb:156:in `require'
    from /var/lib/gems/1.8/gems/activesupport-2.3.8/lib/active_support/dependencies.rb:521:in `new_constants_in'
    from /var/lib/gems/1.8/gems/activesupport-2.3.8/lib/active_support/dependencies.rb:156:in `require'
    from /var/lib/gems/1.8/gems/rails-2.3.8/lib/commands/server.rb:84
    from /usr/lib/ruby/1.8/rubygems/custom_require.rb:31:in `gem_original_require'
    from /usr/lib/ruby/1.8/rubygems/custom_require.rb:31:in `require'
    from script/server:3

When I run rake gems:install, I get this:

Permission denied - /var/lib/gems/1.8/gems/tabs_on_rails-1.3.2/rails/init.rb

I navigated to the tabs_on_rails gem folder in the filesystem and all of the files are locked. According to the files' properties, I am not the owner and cannot change the permissions. All of my other local gems are accessible without permissions problems, so this is odd. Any help is very much appreciated!