Screen scraping with Ruby involves using XPath to select elements from an XML or HTML document, and Ruby tools like Open-URI, REXML, Hpricot and WWW::Mechanize to extract data from websites. The process involves finding XPaths using Firebug, testing regular expressions with Rubular, refining selections in IRB, and using string methods to clean extracted data. Comments should be added as the code becomes more complex with regular expressions and functions.