Try searching for Rails EC2 AMI if you're interested in hosting on EC2: http://pauldowman.com/projects/ruby-on-rails-ec2/
Ask HN: What is the easiest way to host a Rails app?
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Re: Ask HN: What is the easiest way to host a Rails app?
#22I've had good luck with hosting Rails on Dreamhost. They have a good wiki page on how to set it up with capistrano (http://wiki.dreamhost.com/index.php/Capistrano) and you get shell access.