Ok, here is how I understand this.
Does this look correct?

In httpd.conf

  <IfModule mod_ruby.c>
    RubyRequire apache/ruby-run
    RubyRequire apache/eruby-run
    RubyRequire apache/preload_timetest.rb  # contains MyApp class
       
    <Location /preload_timetest>  # If URL is: http://www.mysite/preload_timetest
      RubyHandler Apache::MyApp   # Call Apache::MyApp.handler ??
    </Location>

  <Files *.rhtml>
    SetHandler ruby-object
    RubyHandler Apache::ERubyRun.instance
  </Files>
  </IfModule>

Although no code is required in DocumentRoot
when running preloaded scripts, here is the 
standard layout for the above declarations:

   mysite
    +-htdocs
      *.rhtml - these get executed as ruby files using eruby.
 

--
Jim Freeze