Custom install of Ruby not being used

I am trying to get rails to use my own custom version of Ruby. I have setup my server by using the instructions on this page: http://wiki.dreamhost.com/Ruby

and can confirm my environment is setup fine.


[coneybeare]$ which ruby
/home/mconeybeare/bin/ruby
[coneybeare]$ echo $PATH
/home/mconeybeare/bin:/home/mconeybeare/run/bin:/home/mconeybeare/.gems/bin:/home/mconeybeare/.gems:/usr/lib/ruby/gems/1.8:/usr/local/bin:/usr/bin:/bin:/usr/bin/X11:/usr/games
[coneybeare]$ grep ruby public/dispatch.fcgi
#!/home/mconeybeare/bin/ruby


I am using mongrel to run my server and everything works great... until I go to code.coneybeare.net/flickr

In the error stack I see this (note that the ruby used is NOT my local copy):

Processing FlickrController#index (for 64.81.49.249 at 2008-08-05 13:40:22) [GET]
Session ID: BAh7CDoQZmxpY2tyX3BhZ2VpBjoMcmNjX2VyciIAIgpmbGFzaElDOidBY3Rp