Instailling Rails 2.0.0 extconf.rb failure on windows 7 - ruby-on-rails

Question

I'm trying to install rails 2.0.0 on my computer. I already have already installed ruby on my computer, running the
ruby -v
command returns
ruby 2.0.0p247 (2013-06-27) [x64-mingw32]
Now, I'm trying to install rails 2.0.0 by running
gem install rails
However, I am running into an error:
C:/Ruby200-x64/bin/ruby.exe extconf.rb
*** extconf.rb failed ***
Could not create Makefile due to some reason, probably lack of necessary
libraries and/or headers. Check the mkmf.log file for more details. You may
need configuration options.
Provided configuration options:
--with-opt-dir
--without-opt-dir
--with-opt-include
--without-opt-include=${opt-dir}/include
--with-opt-lib
--without-opt-lib=${opt-dir}/lib
--with-make-prog
--without-make-prog
--srcdir=.
--curdir
--ruby=C:/Ruby200-x64/bin/ruby
--with-atomic_reference-dir
--without-atomic_reference-dir
--with-atomic_reference-include
--without-atomic_reference-include=${atomic_reference-dir}/include
--with-atomic_reference-lib
--without-atomic_reference-lib=${atomic_reference-dir}/
C:/Ruby200-x64/lib/ruby/2.0.0/mkmf.rb:430:in `try_do': The compiler failed to generate an executable file. (RuntimeError)
You have to install development tools first.
from C:/Ruby200-x64/lib/ruby/2.0.0/mkmf.rb:515:in `try_link0'
from C:/Ruby200-x64/lib/ruby/2.0.0/mkmf.rb:813:in `try_run'
from extconf.rb:24:in `<main>'
4th line up says I need to install development tools, so I downloaded the dev kit from http://rubyinstaller.org/downloads/ for my 64 bit windows, and ran the following commands without issue:
ruby dk.rb init
ruby dk.rb install
However, I still got the same error after running gem rails install... .am I installing the wrong development tools or something? I'm not sure what's going wrong
Additionally I'm using pik to control my ruby version, if that information is relevant.
Note: I checked out another possible solution that said that my userfolder had spaces in it, causing the install to go wonky, but my user account doesn't have spaces in it, so that didn't help.
*edit: the mkmf file with more info:
"x86_64-w64-mingw32-gcc -o conftest.exe -IC:/Ruby200-x64/include/ruby-2.0.0/x64-mingw32 -IC:/Ruby200-x64/include/ruby-2.0.0/ruby/backward -IC:/Ruby200-x64/include/ruby-2.0.0 -I. -DFD_SETSIZE=2048 -D_WIN32_WINNT=0x0501 -D_FILE_OFFSET_BITS=64 -O3 -fno-omit-frame-pointer -fno-fast-math -g -Wall -Wextra -Wno-unused-parameter -Wno-parentheses -Wno-long-long -Wno-missing-field-initializers -Wunused-variable -Wpointer-arith -Wwrite-strings -Wdeclaration-after-statement -Wimplicit-function-declaration -march=native conftest.c -L. -LC:/Ruby200-x64/lib -L. -lx64-msvcrt-ruby200 -lshell32 -lws2_32 -limagehlp -lshlwapi "
checked program was:
/* begin */
1: #include "ruby.h"
2:
3: #include <winsock2.h>
4: #include <windows.h>
5: int main(int argc, char **argv)
6: {
7: return 0;
8: }
/* end */