When attempting to install the win32 gem, I ran into a problem that stemmed from not having libeay32.dll and ssleay32.dll in my ruby/bin directory. Ultimately, I ended up correcting the problem by manually copying the files from the gem file.
I assume extconf.rb was trying to make a backup of the files if they were in my ruby/bin directory. I'd suggest checking to see if the files are already present, and if they aren't, then skip the backup. That'll probably make things a little less confusing.
Either that, or copy the version from the gem into the ruby/bin folder first. I imagine either one would work just fine.
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