RubyGems Update Problems

Getting the following error message when trying to use rake?

undefined method `loaded_specs' for Gem:Module

Try updating RubyGems:

$ gem update --system

Getting the following error message when trying to update?

Installing RubyGems 1.3.2
ERROR:  While executing gem ... (Errno::ENOMEM)
    Cannot allocate memory

You're out of RAM. To see how much memory you got left, issue the command:

$ free -m

And to see which process eats up most memory space:

$ ps -eo pmem,pcpu,rss,vsize,args | sort -k 1 -r -n | more

I temporarily shut down mysql and apache, that was just enough to be able to update RubyGems successfully.