The bundled mysql.rb driver has been removed from Rails 2.2

[Ron Bromwell]

Hi All,
Installed eclipse 3.4 about two weeks ago. Created a new project today, and when I do a rake db:migrate ,I am getting the following error:
!!! The bundled mysql.rb driver has been removed from Rails 2.2. Please install the mysql gem and try again: gem install mysql.
rake aborted!

If I run gems list it does not show mysql, so I tried to run the gem install and got the following:
ERROR: Error installing mysql:
ERROR: Failed to build gem native extension.

/System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/bin/ruby extconf.rb install mysql
checking for mysql_query() in -lmysqlclient... no
checking for main() in -lm... yes
checking for mysql_query() in -lmysqlclient... no
checking for main() in -lz... yes
checking for mysql_query() in -lmysqlclient... no
checking for main() in -lsocket... no
checking for mysql_query() in -lmysqlclient... no
checking for main() in -lnsl... no
checking for mysql_query() in -lmysqlclient... no
*** extconf.rb failed ***
Could not create Makefile due to some reason, probably lack of
necessary libraries and/or headers. Check the mkmf.log file for more
details. You may need configuration options.

Any ideas,
Ron