Ruby Gems returns "command not found"

Ubuntu 9.10

Just installed newgem

gem install newgem

and when i try

newgem new_project

I get

adam@adam-ubuntu:~$ newgem newprojectnewgem: command not found

Ive checked my path via echo $PATH

adam@adam-ubuntu:~$ echo $PATH/usr/local/sbin:/usr/local/bin:/usr/sbin:/usr/bin:/sbin:/bin:/usr/games:/home/adam/.gem

and my gem enviroment

adam@adam-ubuntu:~$ gem environmentRubyGems Environment:  - RUBYGEMS VERSION: 1.3.6  - RUBY VERSION: 1.8.7 (2009-06-12 patchlevel 174) [x86_64-linux]  - INSTALLATION DIRECTORY: /usr/lib/ruby/gems/1.8  - RUBY EXECUTABLE: /usr/bin/ruby1.8  - EXECUTABLE DIRECTORY: /usr/bin  - RUBYGEMS PLATFORMS:    - ruby    - x86_64-linux  - GEM PATHS:     - /usr/lib/ruby/gems/1.8     - /home/adam/.gem/ruby/1.8  - GEM CONFIGURATION:     - :update_sources => true     - :verbose => true     - :benchmark => false     - :backtrace => false     - :bulk_threshold => 1000  - REMOTE SOURCES:     - http://rubygems.org/

Im not hot with paths etc but all the gem directories listed above are on the path so how come it cant find the command?