Preface: This answer is obviously way too late to help Billy, but this is a common problem area for people starting up with RoR on Windows and something I repeatedly had trouble with. So...
The first issue is with Step 1. Downloading and extracting the Ruby package is not enough to get a working Ruby environment, as Ruby depends on library support from the OS that doesn't exist in Windows. So you'll need to download and install (essentially, just copy them into the \ruby\bin folder) several DLL files that provide this support. Here's a very clear blog post that covers this install ruby 1.9 on Windows.
You then need to add "c:\ruby\bin" to your windows PATH (obviously modifying that if you installed to a different folder).
Now you can run ruby -v
and gem -v
to check that Ruby is working properly. If you get error messages then you know that something is missing or the PATH is wrong.
An easier alternative is the one-click ruby installer. Unfortunately the old version which ruby-lang.org link to is only for Ruby 1.8.6 and is no longer being updated. There's a new RubyInstaller project team who have a "technology preview" one-click installer for Ruby 1.9.1. Clearly it's still under development, but it works well for me.
Once you have Ruby installed and working you need to install Rails.
Before you start run gem update --system
to update Rubygems to the latest version. Just in case.
Rails (by default) uses the SQLite database for development. You can download the pre-compiled SQLite libraries from the sqlite.org downloads page, and you should extract the zipped sqlite3.dll and sqlite3.def files into \Ruby\bin (or anywhere else on your Windows PATH). You should then run gem install sqlite3-ruby
to install the Ruby SQLite driver.
And now you can run gem install rails
to actually install rails. Expect this to take a minute or two.
Finally, note that the Ruby and Rails environment is constantly changing. And unfortunately compatibility problems are a regular issue for Windows users (for example a few months back it was impossible to get hold of a Ruby 1.9 compatible version of the sqlite3-ruby gem that would compile in Windows). It's quite likely that installation guides that were accurate at the time will be out of date within a few months. So check the date of this post before assuming everything written here is still true!