You can embed any ruby code in RHTML - that is what the R stands for - by putting the code in between <% %> or <%=%>
Try this:
<div class='bar2' id='barpo6'><strong>State: </strong> <%if @boards.running == "1" %> <%= render :text => "Running" %> <%else%> <%= render :text => "Waiting" %> <%end%> </div>
you might be able to embed the whole code block in a <%=%> - give it a try.