Huh, what a time waster.
Rails used to work right out of the box. Not anymore.
I recently had hd crash and today I wanted to do some rails work. No rails, no problem.
So I install it and try to use sqlite3, which I remember was trick to make it work, then I figure, maybe they fixed it by now. No luck.
So I try to google it, like last time, but this time there is no way out. I downloaded sqlite3, put it in ruby/bin folder, then in windows/system32 folder, everything works from command line, but not in rails. It took me quite a bit of search to find this post.
In the end here is what helped:
gem install sqlite3-ruby –version 1.2.3
Hopefully this will help someone else, or me, next time I search.