[ruby-on-rails] `require': no such file to load -- mkmf (LoadError)

You can use RVM(Ruby version manager) which helps in managing all versions of ruby on your machine , which is very helpful for you development (when migrating to unstable release to stable release )

or for Linux (ubuntu) go for sudo apt-get install ruby1.8-dev

then sudo gem install rails to verify it do rails -v it will show version on rails

after that you can install bundles (required gems for development)