Venkat, Here is another question. You have mentioned that Groovy has access to the Java API. Does JRuby not have access to Java API? The reason I ask this question is, if it doesn't that clearly gives an edge to Groovy.
Rama, You can access Java API from JRuby as well. However, Groovy enhances that API through GDK. So in Groovy you can use the Java API using what's already provided in the JDK or much more elegantly using the GDK extensions as well. Also, Groovy objects derive from the good old java.lang.Object as well. It is easier to intermix Groovy created objects and Java created objects. That is why I say that if integration with Java is your primary interest, Groovy is a better choice. If you want to use more of Ruby libraries and Ruby syntax on the JVM, and take advantage of the performance JVM will bring, then JRuby is a better choice.
Thanks Venkat. That gives a good enough explanation of what I was after.
From going through all the threads, it seems Groovy will serve my purpose better, and will be easier to sell to the company than JRuby.
I was very excited about Groovy when I heard Scott's Groovy talks at NFJS. However, I didn't have the right books then to go on. Now that both yours and Scott's book are out, can't wait to get both of them and get started.