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There's lots of confusing information out there about using Ruby Gems to install gems when you're stuck behind a proxy.

This works for me, so hopefully it will for you too.

gem install <gemname> -p http://<username>:<password>@<proxy>:<port>

If you're running Windows and you get the following error:

ERROR: While executing gem ... (NoMethodError)
undefined method `[]=’ for Gem::ConfigFile

then add the following method to ruby/site_ruby/1.8/rubygems/config_file.rb (make sure it's a public method)

def []=(key, value)
@hash[key.to_s]=value
end