Cannot start redmine on ubuntu 10.4

When I try to start redmine 1.1.3 I get this error:
Missing the i18n 0.4.2 gem. Please 'gem install -v=0.4.2 i18n'

However if I do sudo gem list I get:

*** LOCAL GEMS ***

actionmailer (2.3.5)
actionpack (2.3.5)
activerecord (2.3.5)
activeresource (2.3.5)
activesupport (2.3.5)
daemon_controller (0.2.6)
fastthread (1.0.7)
i18n (0.4.2)
mysql (2.8.1)
passenger (3.0.7)
rack (1.0.1)
rails (2.3.5)
rake (0.8.7)

I'm guessing this has something to do with not finding i18n in the gempath when the application actually runs.
Does anyone have any suggestion on how to remedy this?

I can add that I'm using passenger to run redmine. Though I get this error by using ./script/server as well.

I've gotten past this error now (turns out only root could read the gems, chmod a+r solved it) but now instead I get this error:

[Sun May 29 18:40:55 2011] [error] [client 98.210.156.61] /var/www/redmine/public/../config/../vendor/rails/railties/lib/rails/gem_dependency.rb:119:Warning: Gem::Dependency#version_requirements is deprecated and will be removed on or after August 2010.  Use #requirement
[Sun May 29 18:40:55 2011] [error] [client 98.210.156.61] /var/www/redmine/vendor/rails/activerecord/lib/active_record/connection_adapters/abstract/connection_specification.rb:62:in `establish_connection': development database is not configured (ActiveRecord::AdapterNotSpecified)
[Sun May 29 18:40:55 2011] [error] [client 98.210.156.61] \tfrom /var/www/redmine/vendor/rails/activerecord/lib/active_record/connection_adapters/abstract/connection_specification.rb:55:in `establish_connection'
[Sun May 29 18:40:55 2011] [error] [client 98.210.156.61] \tfrom /var/www/redmine/public/../config/../vendor/rails/railties/lib/initializer.rb:438:in `initialize_database'
[Sun May 29 18:40:55 2011] [error] [client 98.210.156.61] \tfrom /var/www/redmine/public/../config/../vendor/rails/railties/lib/initializer.rb:141:in `process'
[Sun May 29 18:40:55 2011] [error] [client 98.210.156.61] \tfrom /var/www/redmine/public/../config/../vendor/rails/railties/lib/initializer.rb:113:in `send'
[Sun May 29 18:40:55 2011] [error] [client 98.210.156.61] \tfrom /var/www/redmine/public/../config/../vendor/rails/railties/lib/initializer.rb:113:in `run'
[Sun May 29 18:40:55 2011] [error] [client 98.210.156.61] \tfrom /var/www/redmine/public/../config/environment.rb:20
[Sun May 29 18:40:55 2011] [error] [client 98.210.156.61] \tfrom /var/www/redmine/public/dispatch.cgi:3:in `require'
[Sun May 29 18:40:55 2011] [error] [client 98.210.156.61] \tfrom /var/www/redmine/public/dispatch.cgi:3
[Sun May 29 18:40:55 2011] [error] [client 98.210.156.61] Premature end of script headers: dispatch.cgi

I have RailsEnv production in my virtual host but it doesn't seem to work. If I do ./script/server -e production it works. Is there something I'm missing?