Cap 2.1, Rails 1.2.5, rake task, and Dreamhost problem...

I am experiencing a Catch-22 problem:

- Deploying a simple rails 1.2.5 app on a Dreamhost account.

- Dreamhost only has Rails 1.2.3 installed, so I've installed my own
Ruby, rubygems, Rails, etc., which is working *almost* perfectly. (The
exception is the problem I am describing here.)

- There is an :after_update_code task that calls a rake task to deploy
a tagged version of Rails to a shared location (patterned after Mike
Clark's "Managing Rails Versions with Capistrano" and Matthew Bass's
"Converting Mike's Capistrano Cadillac into a Camero" blog posts, and
my own improvements (http://pastie.caboo.se/116805). The task is
running this:

cd #{release_path} && rake deploy_edge #{rails_version}
SHARED_PATH=#{deploy_to}/shared

deploy_edge is in the pastie, above, and works locally on my Mac and
when executed from the shell on the host.

- The rake task is failing with the following error:

  * executing "cd /home/me/blah.org/releases/20071126062713 && rake
deploy_edge TAG=rel_1-2-5 SHARED_PATH=/home/me/blah.org/shared"
    servers: ["blah.org"]
    [blah.org] executing command
*** [err :: blah.org] /usr/bin/rake:17:Warning: require_gem is
obsolete.  Use gem instead.
*** [err :: blah.org] Cannot find gem for Rails =1.2.5.0:
*** [err :: blah.org] Install the missing gem with 'gem install -
v=1.2.5 rails', or
*** [err :: blah.org] change environment.rb to define
RAILS_GEM_VERSION with your desired version.

- When I run "rake deploy_edge TAG=rel_1-2-5 SHARED_PATH=/home/me/
blah.org/shared" from the host shell, it works perfectly, but it's
using the rake that I installed, which is using the Rails 1.2.5 that
is in my own gems directory. From the error above, Dreamhost's rake is
being run (/usr/bin/rake) against Dreamhost's gems, which don't
include Rails 1.2.5.

- My .bash_profile in my shell is what puts my own bin directory in
front of Dreamhost's, which is how my Ruby/gem/rake/Rails gets found
when I run from the shell. However, Capistrano doesn't appear to be
using my .bash_profile to set the PATH.

Question: what do I need to do to set the PATH s.t. Capistrano shell
commands find my private Ruby/gem/rake/Rails?

Thank you in advance.

Ed