Setting up Ruby CGI in Apache

Question

I want to use Ruby in Apache through CGI. I have the following in my configuration file:

DocumentRoot /home/ceriak/ruby

<Directory /home/ceriak/ruby>
    Options +ExecCGI
    AddHandler cgi-script .rb
</Directory>

test.rb is a testfile placed under /home/ceriak/ruby/, #!/usr/bin/ruby included on the first line and given executable permissions. Still, when I visit localhost/test.rb I get a download window and can obtain the source code.

Interestingly, when I place the same script under /usr/lib/cgi-bin/ and call localhost/cgi-bin/test.rb it works as supposed.

(Apache2 on Ubuntu 9.10.)

Any idea?