Problems with Cocoapods install

gistfile1.txt

lori@Saphira ~/Dropbox/Projects/rails4ios
$ gem list

*** LOCAL GEMS ***

bundler (1.3.5)
bundler-unload (1.0.1)
rake (10.1.0)
rubygems-bundler (1.2.2)
rvm (1.11.3.8)

lori@Saphira ~/Dropbox/Projects/rails4ios
$ gem install rails
Fetching: i18n-0.6.5.gem (100%)
Successfully installed i18n-0.6.5
Fetching: multi_json-1.8.1.gem (100%)
Successfully installed multi_json-1.8.1
Fetching: tzinfo-0.3.38.gem (100%)
Successfully installed tzinfo-0.3.38
Fetching: minitest-4.7.5.gem (100%)
Successfully installed minitest-4.7.5
Fetching: atomic-1.1.14-java.gem (100%)
Successfully installed atomic-1.1.14-java
Fetching: thread_safe-0.1.3-java.gem (100%)
Successfully installed thread_safe-0.1.3-java
Fetching: activesupport-4.0.0.gem (100%)
Successfully installed activesupport-4.0.0
Fetching: builder-3.1.4.gem (100%)
Successfully installed builder-3.1.4
Fetching: rack-1.5.2.gem (100%)
Successfully installed rack-1.5.2
Fetching: rack-test-0.6.2.gem (100%)
Successfully installed rack-test-0.6.2
Fetching: erubis-2.7.0.gem (100%)
Successfully installed erubis-2.7.0
Fetching: actionpack-4.0.0.gem (100%)
Successfully installed actionpack-4.0.0
Fetching: activemodel-4.0.0.gem (100%)
Successfully installed activemodel-4.0.0
Fetching: arel-4.0.0.gem (100%)
Successfully installed arel-4.0.0
Fetching: activerecord-deprecated_finders-1.0.3.gem (100%)
Successfully installed activerecord-deprecated_finders-1.0.3
Fetching: activerecord-4.0.0.gem (100%)
Successfully installed activerecord-4.0.0
Fetching: mime-types-1.25.gem (100%)
Successfully installed mime-types-1.25
Fetching: polyglot-0.3.3.gem (100%)
Successfully installed polyglot-0.3.3
Fetching: treetop-1.4.15.gem (100%)
Successfully installed treetop-1.4.15
Fetching: mail-2.5.4.gem (100%)
Successfully installed mail-2.5.4
Fetching: actionmailer-4.0.0.gem (100%)
Successfully installed actionmailer-4.0.0
Fetching: thor-0.18.1.gem (100%)
Successfully installed thor-0.18.1
Fetching: railties-4.0.0.gem (100%)
Successfully installed railties-4.0.0
Fetching: hike-1.2.3.gem (100%)
Successfully installed hike-1.2.3
Fetching: tilt-1.4.1.gem (100%)
Successfully installed tilt-1.4.1
Fetching: sprockets-2.10.0.gem (100%)
Successfully installed sprockets-2.10.0
Fetching: sprockets-rails-2.0.0.gem (100%)
Successfully installed sprockets-rails-2.0.0
Fetching: rails-4.0.0.gem (100%)
Successfully installed rails-4.0.0
28 gems installed

lori@Saphira ~/Dropbox/Projects/rails4ios
$ gem install cocoapods
Fetching: activesupport-3.2.14.gem (100%)
Successfully installed activesupport-3.2.14
Fetching: nap-0.5.1.gem (100%)
Successfully installed nap-0.5.1
Fetching: json-1.8.0-java.gem (100%)
Successfully installed json-1.8.0-java
Fetching: cocoapods-core-0.26.2.gem (100%)
Successfully installed cocoapods-core-0.26.2
Fetching: claide-0.3.2.gem (100%)
Successfully installed claide-0.3.2
Fetching: cocoapods-downloader-0.2.0.gem (100%)
Successfully installed cocoapods-downloader-0.2.0
Fetching: colored-1.2.gem (100%)
Successfully installed colored-1.2
Fetching: xcodeproj-0.13.1.gem (100%)
Building native extensions.  This could take a while...
Successfully installed xcodeproj-0.13.1
Fetching: escape-0.0.4.gem (100%)
Successfully installed escape-0.0.4
Fetching: open4-1.3.0.gem (100%)
Successfully installed open4-1.3.0
Fetching: cocoapods-0.26.2.gem (100%)

CHANGELOG:

## 0.26.2
[CocoaPods](https://github.com/CocoaPods/CocoaPods/compare/0.26.1...0.26.2)
• [cocoapods-core](https://github.com/CocoaPods/Core/compare/0.26.1...0.26.2)
• [Xcodeproj](https://github.com/CocoaPods/Xcodeproj/compare/0.11.1...0.13.0)

###### Bug Fixes

* Fixed a crash which was causing a failure in `pod lib create` if the name of
  the Pod included spaces. As spaces are not supported now this is gracefully
  handled with an informative message.  
  [Kyle Fuller](https://github.com/kylef)
  [#1456](https://github.com/CocoaPods/CocoaPods/issues/1456)

* If an user target doesn't specify an architecture the value specified for the
  project is used in CocoaPods targets.  
  [Fabio Pelosin](https://github.com/irrationalfab)
  [#1450](https://github.com/CocoaPods/CocoaPods/issues/1450)

* The Pods project now properly configures ARC on all build configurations.  
  [Fabio Pelosin](https://github.com/irrationalfab)
  [#1454](https://github.com/CocoaPods/CocoaPods/issues/1454)


Successfully installed cocoapods-0.26.2
11 gems installed

lori@Saphira ~/Dropbox/Projects/rails4ios
$ pod setup
/Users/lori/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/site_ruby/2.0.0/rubygems/dependency.rb:298:in `to_specs': Could not find 'json' (~> 1.8) - did find: [json-1.8.0-java] (Gem::LoadError)
  from /Users/lori/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/site_ruby/2.0.0/rubygems/specification.rb:1265:in `block in activate_dependencies'
	from /Users/lori/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/site_ruby/2.0.0/rubygems/specification.rb:1254:in `each'
	from /Users/lori/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/site_ruby/2.0.0/rubygems/specification.rb:1254:in `activate_dependencies'
	from /Users/lori/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/site_ruby/2.0.0/rubygems/specification.rb:1236:in `activate'
	from /Users/lori/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/site_ruby/2.0.0/rubygems/specification.rb:1268:in `block in activate_dependencies'
	from /Users/lori/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/site_ruby/2.0.0/rubygems/specification.rb:1254:in `each'
	from /Users/lori/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/site_ruby/2.0.0/rubygems/specification.rb:1254:in `activate_dependencies'
	from /Users/lori/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/site_ruby/2.0.0/rubygems/specification.rb:1236:in `activate'
	from /Users/lori/.rvm/rubies/ruby-2.0.0-p247/lib/ruby/site_ruby/2.0.0/rubygems/core_ext/kernel_gem.rb:48:in `gem'
	from /Users/lori/.rvm/gems/ruby-2.0.0-p247@rails4ios/bin/pod:22:in `<main>'
	from /Users/lori/.rvm/gems/ruby-2.0.0-p247@rails4ios/bin/ruby_noexec_wrapper:14:in `eval'
	from /Users/lori/.rvm/gems/ruby-2.0.0-p247@rails4ios/bin/ruby_noexec_wrapper:14:in `<main>'