If you are using ubuntu there are separate packages for ruby1.8 and
ruby 1.9. If you install both of them you will get two binaries ruby
and ruby19. You can launch your applications with ruby or ruby19 using
mongrel or passenger.
If you are not using ubuntu or you want to compile your own ruby you
can compile it ./configure --with-prefix /usr/local/ruby19
--program-suffix=19 this will give you ruby19, rake19, gem19 etc.
That should allow you to run the two versions of ruby side by side.