Instant Rails no Rakefile

Answer 1

I've never used Instant Rails but it sounds like you don't have an app created yet. In your rails_apps directory run

rails <app_name>

where app_name is the name of the app you want to create. This command will generate a new Rails app for you. The Rake commands can then be run from inside this new directory (this is the app directory that the book you mention is referring to).

Answer 2

The second error is saying that you need a newer version of rake. Try gem install rake—sorry, I don't know if gem installation is different on Windows.