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When you do gem install someGem, does it install it in your system so it’s available for all your projects, or does it only install it for the project that’s associated with the folder you’re currently in?
This depends on how it is set up. Normally it would be available for all projects but it can be set up as in this tutorial http://janveldeman.wordpress.com/2008/04/14/project-specific-rubygems/ (From 2008 so might require a big of playing to get working with newer versions) to be specific to individual projects.