I'm afraid I have bad news. The project you are trying to run depends on railroady gem, which heavily depends on system sed command. This command is not available on windows, so I'm afraid there won't be any easy solutions.
There are number of tools which tries to add sed command to windows, you can always try installing one of them (Google 'sed windows') and changing the gem so it knows how to call it (with what options etc).
However the best solution would be to say goodbye to windows and move to linux. With enough googling skills you will never look back.