Easiest way to get started with Rails on Windows is to use RailsInstaller - 
http://railsinstaller.org/

MySQL 5.1 has issues with Rails on windows, so better use MySQL 5.0, while 
installing either choose the option where mysql exe is added to path or copy 
libmysql.dll after installation to ruby's bin folder.

If this doesn't work, then post the exact error you encounter and we will 
take it from there.

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