Good, though your solution is still not THAT slower then Greg's:

C:\eclipse\workspace\quizes\other>fold_luke.rb
Each operation will run 1000 times.
2x2 sheet folding done in 0.2 seconds
4x4 sheet folding done in 0.491 seconds
8x8 sheet folding done in 1.282 seconds
16x16 sheet folding done in 3.915 seconds

C:\eclipse\workspace\quizes\other>fold_greg.rb
Each operation will run 1000 times.
2x2 sheet folding done in 0.381 seconds
4x4 sheet folding done in 0.581 seconds
8x8 sheet folding done in 1.071 seconds
16x16 sheet folding done in 2.744 seconds

PS: I tried using memoize library to evaluate the performance boost,
and the results are quite interesting:

(with memoize)
Each operation will run 1000 times.
2x2 sheet folding done in 0.02 seconds
4x4 sheet folding done in 0.01 seconds
8x8 sheet folding done in 0.02 seconds
16x16 sheet folding done in 0.03 seconds
32x32 sheet folding done in 0.04 seconds
64x64 sheet folding done in 0.1 seconds
128x128 sheet folding done in 0.341 seconds
256x256 sheet folding done in 1.372 seconds

(without)
Each operation will run 1000 times.
2x2 sheet folding done in 0.241 seconds
4x4 sheet folding done in 0.56 seconds
8x8 sheet folding done in 1.703 seconds
16x16 sheet folding done in 5.818 seconds
(didn't go further, the things are already clear enough)