I am in the process of installing Ruby on Rails on windows 7. I installed ruby-1.9.2 (in c:\\ruby) and I\'ve installed rails using the gem install rails
command
On Windows you need to set your system PATH variable (My Computer -> Properties -> Advanced -> Environment Variables -> System variables)
Append the PATH Variable value:: c:\ruby\bin;
I'm a windows 7 user, and I was able to get rails working by following this guide: http://www.wiki.devchix.com/index.php?title=Windows_-_Rails_3 I know linking is frowned upon, but the windows 7 installations is quite detailed, and the devchix guide is excellent. I store my apps on the desktop in a folder called 'rails' not in the ruby bin.
Try Rails For The Windows installer. It allows you install Ruby and Rails on Windows in a very simple way.