Rails, Ruby 1.9.3p0, and mysql gem

I'm running CentOS6 and installed Ruby from source, along with Rails and some other staff.

ruby -v
ruby 1.9.3p0 (2011-10-30 revision 33570) [x86_64-linux]  

rails -v
Rails 3.1.3

Some gems:

*** LOCAL GEMS ***

actionmailer (3.1.3, 2.3.14)
actionpack (3.1.3, 2.3.14)
activemodel (3.1.3)
activerecord (3.1.3, 2.3.14)
activeresource (3.1.3, 2.3.14)
activesupport (3.1.3, 2.3.14)
archive-tar-minitar (0.5.2)
arel (2.2.1)
bigdecimal (1.1.0)
bouncy-castle-java (1.5.0146.1)
builder (3.0.0)
bundler (1.0.21)
coderay (0.9.7)
columnize (0.3.5)
edavis10-object_daddy (0.4.3)
erubis (2.7.0)
fastercsv (1.5.0)
ffi (1.0.11)
hike (1.2.1)
hoe (2.12.4)
i18n (0.6.0, 0.4.2)
io-console (0.3)
jruby-openssl (0.7.4)
json (1.5.4)
linecache19 (0.5.13)
mail (2.3.0)
metaclass (0.0.1)
mime-types (1.17.2)
minitest (2.5.1)
mocha (0.10.0)
multi_json (1.0.4)
mysql (2.8.1)
mysql2 (0.3.11, 0.2.7)
net-ldap (0.2.2)
polyglot (0.3.3)
rack (1.3.5, 1.1.2)
rack-cache (1.1)
rack-mount (0.8.3)
rack-ssl (1.3.2)
rack-test (0.6.1)
rails (3.1.3, 2.3.14)
railties (3.1.3)
rake (0.9.2.2)
rdoc (3.9.4)
rmagick (2.13.1)
ruby-debug-base19 (0.11.26, 0.11.25)
ruby-debug19 (0.11.6)
ruby-mysql (2.9.4)
ruby-openid (2.1.4)
ruby_core_source (0.1.5)
rubygems-update (1.8.12)
rubytree (0.5.2)
shoulda (2.11.3, 2.10.3)
sprockets (2.0.3)
sqlite3 (1.3.5, 0.1.1)
sqlite3-ruby (1.3.3, 1.2.5)
thor (0.14.6)
tilt (1.3.3)
treetop (1.4.10)
tzinfo (0.3.31)

I need Rails in order to run chiliproject, but when running the following command

RAILS_ENV=production bundle exec rake db:migrate

I get:

!!! The bundled mysql.rb driver has been removed from Rails 2.2. Please install the mysql gem and try again: gem install mysql.
rake aborted!
cannot load such file -- mysql

Tasks: TOP => db:migrate => environment
(See full trace by running task with --trace)

Now with --trace:

RAILS_ENV=production bundle ex