ruby imports to fail

hi,
My Typo blog ceased to run properly. On one hand I should be posting this message on the 3rd party software thread, but when I ran './dispatch.fcgi', I noticed that the problem's linked with the module import error; the output says:
"no such file to load -- digest/md5 (LoadError)"
The same is true when running './dispatch.cgi', so it is not likely to be caused by fcgi. "pkill ruby" doesn't help either.
Running "gem list" also fails...
The blog software used to run correctly, so, I am confused now: what might be happening? Has anybody encountered the same problem today?
TIA,
Giorgi

There's a discussion of the problem in the troubleshooting forum:

http://discussion.dreamhost.com/showflat.pl?Cat=&Board=forum_troubleshooting&Number=46624&page=0&view=collapsed&sb=5&o=14&part=all&vc=1

The long and short of it is, Dreamhost somehow blew up their ruby installation.