Setting up Ruby for use with MS SQL 2008

Hello there!
I am pretty close to being able to develop in rails, but I keep
running into a problem with my setup in connecting to my MS SQL
database. When I try to navigate to my control page, I get the "..but
something went wrong" page. In the dev log I get the following error:
  Unable to load driver 'ADO' (underlying error: uninitialized
constant DBI::DBD::ADO)
I have configured my database.yml file correctly with:

development:
  adapter: sqlserver
  host: GAV64
  username: gavlogin
  database: helloworld_development
  password: mmmfet$$1

I have also followed the install instructions at http://github.com/rails-sqlserver/
in the install package, but still to no avail. I have also copied the
ADO.rb file into the C:\Ruby\lib\ruby\site_ruby\1.8\DBD\ADO directory.
I think iv had a reasonable stab at getting it going myself, but I
think I now need some new suggestions!
I am running Vista64 with MS SQL 2008 64 bit edition. Any help is
appreciated!