[Rails] Commands of creating new app. are different.

I am following "Head First Rails" to learn Rails Web Application
Development.

To create a new web application from command prompt, the books says:

rails <app_name>

When I try the above command, it doesn't work. After little tweaking I
tried:

rails new <app_name>

This works but crashes the creation of directory structure in:
vendors/plugins.

Later I tried running this command (as mentioned in the book):
ruby script/server

This command doesn't works. I opened the Script folder and found that it
has only one sub-folder with the name Rails.

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