mysql driver is no longer bundled w/ rails. you'll need to install it yourself w/
sudo gem install mysqlhowever, on ubuntu (heron) this won't work. issue these commands first
sudo apt-get install libmysql-ruby libmysqlclient-devif libmysqlclient-dev fails... try libmysqlclient15-dev
then run
sudo gem install mysql
Just finishing up brewing up some fresh ground comments...