As previously mentioned, the bundler version may be too high for your version of rails.
I ran into the same problem using Rails 3.0.1 which requires Bundler v1.0.0 - v1.0.22
Check your bundler version using: gem list bundler
If your bundler version is not within the appropriate range, I found this solution to work: rvm @global do gem uninstall bundler
Note: rvm is required for this solution... another case for why you should be using rvm in the first place.