UPDATE: This article is now rather old, Ruby Gems 1.8.15 is the latest version and should be grabbed from here
Slightly late to the show I updated to RubyGems 1.3.0 today, the upgrade isn’t as straight forward as usual on OSX 10.5 and requires a little extra work.
wincent.com posted up some instructions on how to upgrade to RubyGems 1.3.0 which are useful for anyone having issues.
UPDATE: It looks like this issue is not specific to OSX, I was updating a couple of Linux servers and had to follow the same procedure.