Bundle install stuck at fetching source index


I’m trying a deploy a test app. But bundle install command is waiting forever at

Fetching source index for https://rubygems.org/

Site stops responding after that and only way to get it working afterwards is to reboot the server.

Can somebody point me to wiki article or something which explains how to run bundler. I looked at this article (http://wiki.dreamhost.com/Rails_3) but it didn’t help.

Thanks in advance