>>   # exec *.rbx as ruby scripts.
>>   <Files *.rbx>
>>     SetHandler ruby-object
>>     RubyHandler Apache::RubyRun.instance
>> #    Options ExecCGI
> ^^^
> Why is this uncommented?
>>   </Files>
>> </IfModule>
>> "

An experiment to see if adding it changed 
anything - it didnt. So I
commented it out again.