Had to reinstall crunchbang. Once again ryanbiggs install guide helped. There where two changes need
1. Mentioned on the crunchbang forum at the rvm install stage u get zlib errors. Solutionis on this forum
2. .bashrc needs changed with below line
[[ -s "$HOME/.rvm/scripts/rvm" ]] && source "$HOME/.rvm/scripts/rvm"
To see .bashrc use file manager and hit ctrl h to see system files