Upgrading Rails: rails new . creating a new directory new in the project folder

Question

I am trying to upgrade rails from 2.3 to 3.1. I have referred the upgrade video from rails cast but i am having some difficulties.

Steps i have followed till now.
1. Create a separate rails-3 branch from stable branch.
2. Update & reload rvm to the latest version.
3. gem install rails -v 3.0.20
4. rails upgrade check and rails upgrade backup using rails upgrade plugin
5. rails new .

The step 5 is where i am facing issue this is creating a separate application in a folder named "new" in a sub directory and this is not over writing the current application as per the video in rails cast.

When i am checking the rails version after installing rails gem in step 3 i still see the rails version as 2.3.18.

Can anyone please help. What am i doing wrong? Thanks.

Answer 1

I figured out the issue, i had to delete the Gemfile.lock and the issue got resolved.