Whenever I open a new terminal window I now get:
-bash: /usr/local/bin/heroku: /usr/local/bin/ruby: bad interpreter: No such file or directory
Any idea as to why this is happening and how to get rid of it?
Make sure the first line of the file /usr/local/bin/heroku is #!/path/to/ruby.  You may need to change it from /usr/local/bin/ruby to /usr/bin/ruby, or if you cannot find the ruby executable, type which ruby or updatedb && locate ruby to find it.
If the above doesn't work...
Check your ~/.bashrc, ~/.inputrc~, /etc/bashrc, /etc/inputrc, /etc/profile for a line trying to execute /usr/local/bin/heroku.
Another idea is you might have this as one of your startup programs.  Check in /etc/inittab for a line with /usr/local/bin/heroku.
If you still cannot find that line in any of those files you can run grep -iH heroku /*
brew install wget
wget -qO- https://toolbelt.heroku.com/install.sh | sh
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