[MacRuby-devel] require failing to find installed gem - from Cocoa app

I've installed a gem that I'm trying to use from the latest nightly; but the embedded macruby runtime; does not find the gem. Controller.rb:14:in `<main>': no such file to load -- xml-object (LoadError) What do I need to do so that the embedded macruby can find my installed gem? I can perform the require successfully from macirb. Then gem is installed off my home directory at: ~/.gem Thanks in advance.