TorqueBox allows developers to build and deploy Rack and JRuby applications on JBoss Application Server. It provides features such as background processing, scheduling, services and clustering out of the box. TorqueBox makes use of JRuby's Java integration to provide a fast Ruby runtime and access to Java libraries and tools. It aims to provide all the capabilities of a full application server while allowing developers to work in Ruby and avoid technologies like XML, Java code and WAR files. Setting up TorqueBox involves downloading the distribution, exporting some environment variables and using Rake tasks to deploy and manage applications.