[Radiant] bootstrap is telling me it cannot find the gem, gem list shows it though

[Jared Blitzstein]

I've asked my shared host (asmallorange) to install the 0.6.6 gem and  
they have, I've confirmed with gem list

  # gem list radiant
*** LOCAL GEMS ***
radiant (0.6.6, 0.6.4)

I've created a new site via: radiant -d mysql myap, created the  
database/updated database.yml, uncommented ENV['RAILS_ENV']  in  
environment.rb. When I run bootstrap I get the following

# rake production db:bootstrap
(in /home/myuser/railsapps/myradiantapp)
Missing the Radiant  gem. Please `gem install -v= radiant`, update  
your RADIANT_GEM_VERSION setting in config/environment.rb for the  
Radiant version you do have installed, or comment out  
RADIANT_GEM_VERSION to use the latest version installed.

I checked environment.rb and there isn't a RADIANT_GEM_VERSION entry  
so I would assume it would try and use the 0.6.6 gem. Is there a way I  
can confirm it is in-fact not finding the gem? The rails version is  
the 2.0.2 gem.