Found the problem after a bit of digging as somebody installing rails had 
what appeared to be the same issue.

Apparently there is a long standing issue in Ruby where the net/http 
library by default does not check the validity of an SSL certificate during 
a TLS handshake.
To fix it I copied a cacert.pm from http://curl.haxx.se/ca/cacert.pem and 
put it in my Ruby library. 

Next step is to point current command session to it: set 
SSL_CERT_FILE=C:\Ruby200\cacert.pem and then try again installing watir: 
gem install watir.  

Worked a treat, up and running with watir on this vm now, happy days!

Thanks to original rails installer post: 
https://gist.github.com/fnichol/867550




On Friday, 1 November 2013 14:22:37 UTC, gary wrote:
>
> Hi all, Has anyone been having installation issues lately? I've used 
> watirbook instructions previously with no problems but the last few 
> attempts have failed when trying to install watir. Oddly I installed on 2 
> windows 7 vm's 2 days ago without hitch, but i tried adding to another w7 
> and a w8 vm yesterday with the following error:
>
> ERROR:  While executing gem ... (Gem::RemoteFetcher::FetchError)
>     SSL_connect returned=1 errno=0 state=SSLv3 read server certificate B: 
> certif
> icate verify failed (
> https://rubygems.global.ssl.fastly.net/quick/Marshal.4.8/co
> mmonwatir-4.0.0.gemspec.rz)
>
> I then tried again today on W8 vm's with the same issue. Anyone else 
> encountered this?
>
> Regards, G
>

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