ROR Setup on Ubunto
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If you are on Ubuntu then installation of Ruby is Very easy.

1. Open terminal and enter command.

sudo apt-get install ruby-full build-essential

2. You can use WEBrick which is inbuilr server. But to configure with Apache.

sudo apt-get install apache2 apache2-mpm-prefork apache2-prefork-dev

3. Installing RubyGems.

wget http://rubyforge.org/frs/download.php/60718/rubygems-1.3.5.tgz
tar xzvf rubygems-1.3.4.tgz
cd rubygems-1.3.4
sudo ruby setup.rb
sudo ln -s /usr/bin/gem1.8 /usr/bin/gem
sudo gem update --system

4. Installing Rails

sudo gem install rails

5. Installing MySql database

sudo apt-get install mysql-server mysql-client

sudo apt-get install libmysql-ruby libmysqlclient15-dev

sudo gem install mysql

6. Installing Mongrel server

sudo gem install mongrel