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Getting 'Error initializing New Relic plugin' after installation

I've just installed the plugin and am getting this error after i 'script/server'
I'm using rails 1.2.6, with lighttpd
Ruby 1.8.5
Rake 0.8.1
gem 0.9.4
using port 4001

Mac OSX 10.5

** [NewRelic] Error initializing New Relic plugin
** [NewRelic] undefined method `load_paths' for Dependencies:Module
** [NewRelic] vendor/plugins/newrelic_rpm/init.rb:64:in `load_plugin'
 
sad I’m confused
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