rails gem installation error.. NMAKE fatal error stdlib.h no such file

I am getting this error when I install Rails gem or update.. Pls guide..(vctoolkit 2003 was installed to rectify a earlier error of cl not found)

Q:\Rails\Rails>gem install railsTemporarily enhancing PATH to include DevKit...

Building native extensions.  This could take a while...

ERROR:  Error installing rails: ERROR: Failed to build gem native extension.        Q:/Rails/Rails/bin/ruby.exe extconf.rb

creating Makefile
nmake

Microsoft (R) Program Maintenance Utility   Version 1.50 Copyright (c) Microsoft Corp 1988-94. All rights reserved.

        Q:\Rails\Rails\bin\ruby -e "puts 'EXPORTS', 'Init_generator'"  > generator-i386-mswin32.def
        cl -nologo -I. -I

Q:/Rails/Rails/include/ruby-1.9.1/i386-mswin32 -I

Q:/Rails/Rails/include/ruby-1.9.1/ruby/backward -I

Q:/Rails/Rails/include/ruby-1.9.1 -I. -MD -Zi -W2 -O3b2xg- -G6 -Zm600 -DJSON_GENERATOR -Fogenerator.obj -c -Tcgenerator.c
cl : Command line warning D4002 : ignoring unknown option '-O3'generator.c

q:\Rails\Rails\include\ruby-1.9.1\ruby\ruby.h(50) : fatal error C1083: Cannot open include file: 'stdlib.h': No such file or directory

NMAKE : fatal error U1077: 'C:\WINDOWS\system32\cmd.exe' : return code '0x2'Stop.

Gem files will remain installed in Q:/Rails/Rails/lib/ruby/gems/1.9.1/gems/json-1.7.5 for inspection.
Results logged to Q:/Rails/Rails/lib/ruby/gems/1.9.1/gems/json-.7.5/ext/json/ext/generator/gem_make.out

Q:\Rails\Rails>

Last edited by ajmal017 (2012-12-11 12:41:13)