Mysql – Rails, MySQL and Snow Leopard

I upgraded to Snow Leopard using the disc we got at WWDC.

Trying to run some of my rails apps now complains about sql

    (in /Users/coneybeare/Projects/Ambiance/ambiance-server)
!!! The bundled mysql.rb driver has been removed from Rails 2.2. Please install the mysql gem and try again: gem install mysql.
Importing all sounds in /Users/coneybeare/Projects/Ambiance/ambiance-sounds/Import 32/Compressed/

 -- AdirondackPeepers.caf
!!! 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!
dlopen(/opt/local/lib/ruby/gems/1.8/gems/mysql-2.7/lib/mysql.bundle, 9): Library not loaded: /usr/local/mysql/lib/libmysqlclient.16.dylib
  Referenced from: /opt/local/lib/ruby/gems/1.8/gems/mysql-2.7/lib/mysql.bundle
  Reason: image not found - /opt/local/lib/ruby/gems/1.8/gems/mysql-2.7/lib/mysql.bundle

(See full trace by running task with --trace)

I could have sworn I fixed this once before. The problem is that

sudo gem install mysql

does not work and gives the error:

 Building native extensions.  This could take a while...
ERROR:  Error installing mysql:
    ERROR: Failed to build gem native extension.

/opt/local/bin/ruby extconf.rb install mysql
checking for mysql_query() in -lmysqlclient... no
checking for main() in -lm... yes
checking for mysql_query() in -lmysqlclient... no
checking for main() in -lz... yes
checking for mysql_query() in -lmysqlclient... no
checking for main() in -lsocket... no
checking for mysql_query() in -lmysqlclient... no
checking for main() in -lnsl... no
checking for mysql_query() in -lmysqlclient... no


Gem files will remain installed in /opt/local/lib/ruby/gems/1.8/gems/mysql-2.7 for inspection.
Results logged to /opt/local/lib/ruby/gems/1.8/gems/mysql-2.7/gem_make.out

Has anybody gotten mysql to work with rails on snow leopard yet? If so, what is your setup and better yet, what can I do to reproduce it?