1. Download ruby source
wget http://ftp.ruby-lang.org/pub/ruby/1.8/ruby-1.8.7.tar.gz
tar -zxvf ruby-1.8.7.tar.gz
2. Install dependencies
sudo yum install gcc
sudo yum install gcc-c++
sudo yum install zlib-devel
sudo yum install openssl-devel
sudo yum install readline-devel
sudo yum install sqlite3-devel
3. Build ruby from source
cd ruby-1.8.7
./configure --with-openssl-dir=/usr/lib64/openssl
make
sudo make install
4. Download rubygems source
wget http://rubyforge.org/frs/download.php/69365/rubygems-1.3.6.tgz
tar -zxvf rubygems-1.3.6.tgz
cd rubygems-1.3.6
sudo ruby setup.rb
5. Install gems
sudo gem install rake
sudo gem install rails
sudo gem install sqlite3-ruby (optional)


Thanks a lot. I came across a CentOS 5.4 today requiring fresh ruby badly, and this saved me some time.
-Mads
thanks for this great howto!
Just a note: on my Centos 5.4 (64bit), package is called sqlite-devel (no aditional repos installed).
When I installed that package, it worked perfectly.