Apparently, hot from the oven:

Setting up a Rails Development Environment on Windows Using Eclipse.

My only complaint is that setting up external rails commands is rather tedious and commands have no guard rails (sorry) due to command line level integration with Eclipse.

NOTE: I am not completely sold on Ruby nor Rails. I am playing around with Ruby on my breaks just to get the bitter taste of real world engineering out of my mouth.

Update:

WEBrick is usually shut-down with control-C but since it is launched as a Eclipse external tool, it has to be shutdown directly from the Eclipse Debug view.