[Rails] New Rails user, slightly confused by `rails` command

Hi,

I've just installed Rails v3.0.5 and reading the guide
http://guides.rubyonrails.org/getting_started.html#creating-a-new-rails-project.
Where it says to do:

rails new blog

that actually creates a site in a folder called "new".

I also tried a couple of generators, `rails generate devise:install`
created a folder called "generate", and so on.

This is the first line of output from `rails -h`:

Usage: /usr/bin/rails /path/to/your/app [options]

Which explains why I'm getting these folders created, but not why the
guides would tell me something different.
I'm wondering if I'm doing something incredibly stupid. If I am feel
free to point it out, it's just par for the course.

Any help is much appreciated
Iain

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