Rails opted for REST over SOAP:
It’ll probably come as no surprise
that Rails has picked a side in the
SOAP vs REST debate. Unless you
absolutely have to use SOAP for
integration purposes, we strongly
discourage you from doing so. As a
naturally extension of that, we’ve
pulled ActionWebService from the
default bundle. It’s only a gem
install actionwebservice away, but it
sends an important message none the
less.
Still, if you must use SOAP, there's always soap4r, but it only supports SOAP 1.1. A better option might be WSF/Ruby. Mark Thomas has an example controller to help you get up and running.