Ruby on Rails - bundle install fails with SSL certificate error

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After a fresh install of Ruby and Ruby on Rails on a new Windows 7 machine, running "bundle install" in my Rails 3 project results in the following SSL certificate verification error:

Gem::RemoteFetcher::FetchError: SSL_connect returned=1 errno=0 state=SSLv3 read  
server certificate B: certificate verify failed (https://rubygems.org/gems/rake-  
0.9.2.2.gem)  
An error occurred while installing rake (0.9.2.2), and Bundler cannot continue.  
Make sure that `gem install rake -v '0.9.2.2'` succeeds before bundling.  

This was a bug that was fixed and running the following command fixed my issue:

gem update --system  

I found this solution on stack overflow, but it is buried at the moment and difficult to reference. Hope this helps someone!

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