mislav-will_paginate-2.3.8 error on ubuntu 9.04 hobo ruby on rails install

---------- Up Migration ----------
create_table :users do |t|
t.string :crypted_password, :limit => 40
t.string :salt, :limit => 40
t.string :remember_token
t.datetime :remember_token_expires_at
t.string :name
t.string :email_address
t.boolean :administrator, :default => false
t.datetime :created_at
t.datetime :updated_at
t.string :state, :default => "active"
t.datetime :key_timestamp
end
----------------------------------

---------- Down Migration --------
drop_table :users
----------------------------------
What now: [g]enerate migration, generate and [m]igrate now or [c]ancel? m

Migration filename:
(you can type spaces instead of '_' -- every little helps)
Filename [hobo_migration_1]: first
create db/migrate
create db/migrate/20090514144832_first.rb
(in /home/user/agility)
rake aborted!
no such file to load -- /home/user/agility/app/controllers/application