How to install gems for Ruby Enterprise (REE) and Phusion (passenger, mod_rails)
sudo /opt/ruby-enterprise-1.8.6-20080810/bin/gem install image_science #or sudo /opt/ruby-enterprise-1.8.6-20080810/bin/gem install mislav-will_paginate #etc #make sure to type in the correct version of REE you have installed
Ruby Enterprise does not currently grab the gems you already had installed using sudo gem install gem-name.
Instead you have to install them to ruby enterprise by doing the above.

Scott | November 8, 2008
Also, here’s a great way to copy all your gems over automatically: http://pastie.org/310421
Taken from http://griffin.oobleyboo.com/archive/ruby-enterprise-edition-gem-install-script/ with the addition of sudo user.