Fixes #7233 - Drop Ruby 1.8.7 and revert Ruby 1.8.7 specifics

- [x] rake test passed
- [x] rails server loaded and function correctly
- [x] Ubuntu 12.04 packaging blocker issue 
- [x] drop 1.8.7 tests on Jenkins
This will need to be 2.0, it looks like we can't rebase the RPMs, as they're also in use in Hammer, which is running on 1.8 on EL6.