Ok I figured it out. Smallest change, but got it to work. Seems like 
super is creating an object that wasn't being created that the 
initialize methods needs to run.

in the SoapServer class you need to add super before adding your 
methods. It should look like this.

class SoapServer < SOAP::RPC::StandaloneServer
  # Expose our services
  def initialize(*args)
    super
    add_method(self, 'add', 'a', 'b')
    add_method(self, 'div', 'a', 'b')
  end

  # Handler methods
  def add(a, b)
    return a + b
  end
  def div(a, b)
    return a / b
  end
end
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