If you’d like to use Ruby 1.9.x in your OCS hosting account, you can follow the guide we have put together on the OCS Support Wiki called Installing Your Own Ruby Stack. It shows you how to install the entire Ruby stack, including your own set of Rubygems. The only downside to this is that you must use Mongrel, you cannot use Passenger.
We are however working on a setup that will allow you to run Nginx+Passenger both on our cPanel and Webmin servers. We’ll announce it here when complete (hopefully very soon), and if you’re interested in beta testing please contact us.