Installing ruby-db2-0.4 for DB2 gives SQLConnect() errors



I’m new to Ruby and i was trying to install the “ruby-db2-0.4” package
and i’m getting the below error. Can any one please guide me. I folled
the instructions as per the Readme. I’m using DB2 V 8.1.4. I have
installed DB2 CLI. Also i have set the path to poing to
DB2DIR=C:\Progra~1\IBM\SQLLIB, but when i run “ruby setup.rb setup” i
get the below error.

entering setup phase…
c:/ruby/bin/ruby extconf.rb
checking for SQLConnect() in db2cli.lib… no
ABORT: Could not locate DB2 libraries or headers!
Please set DB2DIR to your DB2 directory, e.g. /usr/IBMdb2/V7.1 (UNIX) or
IB (Windows)
setup failed
‘system c:/ruby/bin/ruby extconf.rb’ failed
try “ruby setup.rb --help” for usage

Thanks for your help