I go to Settings - Ruby SDK and Gems, and pick out C:\RailsInstaller\Ruby1.9.3\bin\ruby.exe
.
It loads up a bunch of gems on the right side, and looks like it's going to work.
I hit OK, and still have awful syntax highlighting and it still thinks it has no Ruby interpreter.
I've tried invalidating the cache, and even downloading a new version of ruby and pointing it to the new binary ruby.exe file.