I think I recall hearing something about the version of ruby that ships with the mac OS being um well a kind word would be ancient (1.8 started in 2003.. 1.8.7 in 2008, and while it has been patched more recently than that, it's still kinda old.)
Not sure what Apple's reason for not going to a 1.9 version was, but for some reason they seem to like the older stuff.
Most folks I know working on Watir use some flavor of Ruby 1.9 typically 1.9.3 or 1.9.3. Increasingly people are shifting to 2.0, which came out in Feb.
The first thing I would try is getting a more current version or Ruby and see if that eliminates that error. Instructions are found here I'm pretty sure I used RVM when I installed on my 'work' system (a macbook pro). RVM can be pretty handy (such as if you want to experiment with 2.0) so I'd usually recommend using it for folks on a Mac