I got it running. It is painfully slow though. I thought it would be acceptable for development, but it isn't. It takes like 20 seconds or so for a request. It turns out that if you are using plain cgi the whole rails framework is re-loaded for each request.
Anyway, I did update the wiki (see below). My problem was that all my directories and the various dispatch.* files, weren't set to the correct permissions. They need to be chmod'd to 755:
If that isn't it, drop me a line and I'll see if I can help.
I agree on liking DH and sure hope we get rails support soon!