From a previous post I got Ruby mode working in emacs. This is working great.
Setting up .emacs file for mac ruby development
Our company uses 4 spaces for in
The tab-width setting only controls the width of a tab character, i.e. how many spaces a tab character is equivalent to when displayed in your buffer. It does not affect the number of spaces (or tabs) used for indenting your code.
For Ruby code, the indentation is controlled by the ruby-indent-level variable:
(setq ruby-indent-level 4)