Index: gem_prelude.rb
===================================================================
--- gem_prelude.rb	(revision 28530)
+++ gem_prelude.rb	(working copy)
@@ -179,6 +179,7 @@
 
       GemPaths = {}
       GemVersions = {}
+      GemLoadPaths = []
 
       def push_gem_version_on_load_path(gem_name, *version_requirements)
         if version_requirements.empty?
@@ -241,29 +242,27 @@
           end
         end
 
-        require_paths = []
-
         GemPaths.each_value do |path|
           if File.exist?(file = File.join(path, ".require_paths")) then
             paths = File.read(file).split.map do |require_path|
               File.join path, require_path
             end
 
-            require_paths.concat paths
+            GemLoadPaths.concat paths
           else
-            require_paths << file if File.exist?(file = File.join(path, "bin"))
-            require_paths << file if File.exist?(file = File.join(path, "lib"))
+            GemLoadPaths << file if File.exist?(file = File.join(path, "bin"))
+            GemLoadPaths << file if File.exist?(file = File.join(path, "lib"))
           end
         end
 
         # "tag" the first require_path inserted into the $LOAD_PATH to enable
         # indexing correctly with rubygems proper when it inserts an explicitly
         # gem version
-        unless require_paths.empty? then
-          require_paths.first.instance_variable_set(:@gem_prelude_index, true)
+        unless GemLoadPaths.empty? then
+          GemLoadPaths.first.instance_variable_set(:@gem_prelude_index, true)
         end
         # gem directories must come after -I and ENV['RUBYLIB']
-        $:[$:.index{|e|e.instance_variable_defined?(:@gem_prelude_index)}||-1,0] = require_paths
+        $:[$:.index{|e|e.instance_variable_defined?(:@gem_prelude_index)}||-1,0] = GemLoadPaths
       end
 
       def const_missing(constant)
@@ -289,7 +288,6 @@
 
   begin
     Gem.push_all_highest_version_gems_on_load_path
-    Gem::QuickLoader.fake_rubygems_as_loaded
   rescue Exception => e
     puts "Error loading gem paths on load path in gem_prelude"
     puts e
Index: lib/rubygems.rb
===================================================================
--- lib/rubygems.rb	(revision 28530)
+++ lib/rubygems.rb	(working copy)
@@ -579,6 +579,12 @@
     $LOAD_PATH.index { |p| p.instance_variable_defined? :@gem_prelude_index }
   end
 
+  def self.remove_prelude_paths
+    Gem::QuickLoader::GemLoadPaths.each do |path|
+      $LOAD_PATH.delete(path)
+    end
+  end
+
   ##
   # The file name and line number of the caller of the caller of this method.
 
@@ -1098,14 +1104,15 @@
 
 require 'rubygems/config_file'
 
+Gem.remove_prelude_paths
+
 ##
 # Enables the require hook for RubyGems.
 #
-# Ruby 1.9 allows --disable-gems, so we require it when we didn't detect a Gem
-# constant at rubygems.rb load time.
+# We remove the paths prelude added, so we need custom require to get
+# any gems now.
+require 'rubygems/custom_require'
 
-require 'rubygems/custom_require' if gem_disabled or RUBY_VERSION < '1.9'
-
 Gem.clear_paths
 
 Gem.load_plugins