How does rails fare when looked at in conjunction with the wizard
Not too well but you can engineer it fairly easily. There also were plugins designed to make the task easier.
Rails doesn't seem architectured towards the wizard style.
No, because Rails is architectured around doing an action in one request-response cycle. It's not well fit for spreading a business transaction across many requests, but you can do it nevertheless.
<flame>Never mentioning that wizards are terribly ugly and humiliating for the users, in the first place</flame>