So here I am setting up a new clean development environment on Snow Leopard. And this is how I got Ruby on Rails installed.
1. Install XCode from the Mac OS X CD
2. Check gcc properly installed
gcc --version
3. Install the RVM from github
curl -L https://get.rvm.io | bash -s stable
4. Switch to new terminal window and check rvm all installed
rvm --version
5. Install Ruby 1.9.3 under rvm
rvm install 1.9.3
6. Make cuppa, watch video about squirrels..
rvm use 1.9.3
rvm --default 1.9.3
sqlite3 -version
gem install sqlite3
gem install rails
rails -v