Re all, I've found a solution which works for me. It's basically an implementation of the Haversine function for ruby taken from here http://www.esawdust.com/blog/gps/files/HaversineFormulaInRuby.html
There is another one I haven't tried here: https://github.com/almartin/Ruby-Haversine The only drawback is that I got to fetch all the db records which are around 500 and apply haversine distance to each compared against users's current location (which is provided by the phone). Thanks everyone for the input! It really helped me find the right direction, or at least reasonable. Rama
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