Well

I installed ruby 1.8.4 exactly the same way I had installed 1.85:

    36  17:25   ./configure --prefix=/opt/local --enable-pthread 
--with-readline-dir=/usr/local
    37  17:27   make
    38  17:34   make test
    39  17:53   sudo make install
    40  17:53   make clean

And, voila, ruby works, gem is installed, gem works, and rails is now 
installing via gem.
Notice the "make test" step worked for 1.8.4 too.

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