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So the solution is to overwrite rails.bat because the path was hard coded. Here is the right version to use (also available in the repository in scripts/rails.bat).
The original file is in C:\RailsInstaller\Ruby2.2.0\bin
I installed Rails from http://railsinstaller.org/en on my Windows 7 desktop and the installation went fine. However, after installation when I do:
It's basically the same problem as #72 in the readme, but I thought making an issue would make it clearer.
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