Connecting rails 3 to Sql Server 2008 on a mac

I am writing this to document the steps I had to take to get a Rails 3 app to connect to an existing Sql 2008 Server using ActiveRecord. I have an existing database that the rails app needs to pull data from and I am developing locally on a mac. It is pieced together from several other HOWTO’s and a bunch of trial and error.
The dependancies to make all of this work are unixodbc, FreeTDS, ruby-odbc and activerecord-sqlserver-adapter.

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