If you already investigated Ruby's installation directory, you may have noticed the huge amount of files there. I've just installed Ruby 1.8.6 and Rails 1.2.3. The disk contains now 26,978 more files and 4,142 more folders.
A medium sized Windows installation has around 40,000 files and folders, meaning Ruby accounts for almost 50% of all Master File Table record entries when it is installed in an NTFS partition. The first obvious effect is that a search on the root of the drive must examine twice the number of files. The other, not so obvious, is that the MFT will fragment, because of the large number of small files.
Moreover, small files (typically 1,500 bytes or less) are stored directly inside the MFT. From those 26,978 files 20,660 are 1,500 bytes or smaller (not to say about the directories, whose sizes I don't know how to calculate, although I bet most are considered small), i.e. most of Ruby's files are inside the MFT.
If you don't want Ruby to be a big degradation factor for your hard disk performance, install it on a separate partition, which you can simply reformat latter if the MFT gets heavily fragmented.