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I've installed Ruby and SASS on my Windows 8 computer. I'm using PhpStorm's Language Processor with the sass.bat file.

Everything is setup correctly, but I get this error in PhpStorm: '"ruby.exe"' is not recognized as an internal or external command, operable program or batch file.

It could be that when sass.bat is executed, my system isn't allowing ruby.exe to be run, because it needs administrator privileges.

Does anyone know how to fix this problem?

When did you installed ruby -- was PhpStorm running at that moment? Try restarting PhpStorm or whole computer -- it seems that path to ruby.exe is not currently listed in PATH environment variable. If it's not listed there (just execute PATH in command line) .. then you need to add it there (My Computer | Properties ... -- goggle for it) .. but try restarting PC first. - LazyOne
The problem is unrelated to a path issue. The ruby.exe file exists in the same folder as the sass.bat file. PhpStorm has a program path for SASS set to the bin directory where both files exist. If I just use a command line and go into that folder, type "sass -v", I get the correct response. Btw, to be complete, i did restart, and it had no impact. - Darin Peterson
It doesn't make sense to me, b/c I tell the PhpStorm language processor the path to sass.bat, where ruby.exe also lives, but @LazyOne was right about the path. I set the path: C:\Ruby200\bin in the environment variables, and everything is working. - Darin Peterson