I've heard that you have to use non-blocking code throughout the application to be able to harness true power of EventMachine.
Does this mean I can't run Ruby on Rails with EventMachine?
I know this question is a bit old, but for anyone interested in using eventmachine and RoR, I'd highly recommend checking out Ilya Grigorik's Async Rails Project https://github.com/igrigorik/async-rails he and a few other people have done a great job creating an example fully event RoR App. Plus there is a lot of resources that he links to, to learn more about what's really going on behind the scenes.
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