The error appears because of Gem#find_home(rubygems.rb line 498) method 
not working with unicode characters which can be present in your homedir 
path(and in your case they definitely are).
That method reads the followig environment variables: 'HOME', 
'USERPROFILE', ['HOMEDRIVE'+'HOMEPATH'].

This homepath is used to define @update_cache variable(spec_fetcher.rb 
line 46):
@update_cache = File.stat(Gem.user_home).uid == Process.uid
with related consequences.

I think you should reset your gem.bat to default and only use your 
version when needed.

Also you can just undefine HOMEPATH environment variable before using 
gem utility:
(windows -- Start->Run->cmd)
set HOMEPATH=
gem install <somegem>
<...>
After closing cmd-session this variable would be set to default 
automatically.
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