Coming back after some time and having to follow the steps to install rvm,ruby and puppet, there is a slight change with the steps described on the book.
One of the main differences now is that puppet 3.0.1 supports ruby 1.9.3.
So below are the steps followed to make it work.
1. Remove system ruby
sudo rm -rf /opt/vagrant_ruby/
2. Install rvm with system wide installation:
curl -L get.rvm.io | sudo bash -s stable
3. Add vagrant user and any other additional user to the rvm group:
sudo usermod --append --groups rvm vagrant
4. Exit and login back in to install ruby 1.9.3-p327 (current)
$ vagrant ssh
vm$ rvm install 1.9.3-p327
5. Install puppet as the vagrant user and NOT as sudo:
gem install puppet -v 3.0.1
6. Replace paths (ie gem path) from