> you can DL these as .gem or .exe. I was reading online and saw that
> DL'ing the exe is easier.
> I DL'ed the watir-1.4.1 *i bevlive*, and saved it in C drive. 

I'm surprised that a gem is offered as "exe". I always first try
to install the gems like this:

  gem install -r GEMNAME

This usually takes care of downloading, provided the gem can be found
at rubyforge. If you prefer, or if you get a gem from a different
site, you can download the gem and install it locally:

  gem install FILENAME

(where FILENAME is the name of the downloaded gem).
  
> 'gem' is not recognized as an internal or external command,
> operable program or batch file.
> 
> C:\>
> I thought i had gems installed along wirth ruby, so just in case i got
> it online and installed it again?

At least if you use a sufficiently new version of Ruby, it *should* be
there.
What does ruby --version say?

Next, execute

  ruby -e "puts Config::CONFIG['bindir']"

and have a look in that directory: Is there no GEM.BAT?

Could it be that you have moved ruby.exe after installation to some
directory
in your PATH, so that only ruby.exe is seen, but not the other
utilities?
Can you for example execute

  ri Array

or do you get here an error message too?

Ronald
-- 
Ronald Fischer <ronald.fischer / venyon.com>
Phone: +49-89-452133-162