Hey, I made this video a while ago because I needed to get an artist to understand the basic principals of setting up a rails development environment and I needed them to do it on a machine that I could effortlessly remote administer (windows 7).
Perhaps this procedure will help you get started with rails?
I have a detailed linux procedure documented here in text if you have access to a linux machine (debian/ ubuntu)
Linux - http://www.dreamincode.net/forums/blog/1662/entry-3490-day-6-installing-rails...
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