When I hear Rails I think Heroku or EngineYard as well as RackSpace
Tech: http://compositecode.com
We have the perfect way to get going. With just a name and email address, you can have your app up and running in minutes, and you’ll have up to 500 compute hours on a full-featured High-CPU Medium instance. You can even start and stop your instance as needed, enabling you to spread out your 500 hours over a period of up to 6 calendar months
If you want a completely DIY linux box on the "cloud", some other good
options are:
FSTServers Xen VPS Hosting
http://fstservers.com/plans/
Linode Xen VPS Hosting
http://www.linode.com/
I've used both of those, and you just get a plain-jane install of
Ubuntu with a root login, and a fixed monthly cost. They aren't beefy
instances, but they also aren't metered, and are quite cheap. I've
installed rails apps on both of those minimum instances and they run
fine.
While Linode starts around $20/month and only offers Unbuntu, the
capabilities of the instance are cheaper and comparable with Rackspace
and AWS.. FST allows Windows starting around 12.50 a month, and you
can easily blow away your ubuntu instance and turn it into a windows
instance whenever you want, or vice-versa. Very flexible, and
inexpensive for prototyping.
Also, if installing various services/infrastructure on Ubuntu is in
anyway new to you, the Linode Library of how-tos is awesome. It's a
great resource even if you're using a totally different hosting
system, because a lot of it is just general install/setup information,
and not specific to Linode.
Linode Library
http://library.linode.com/
Thanks,
Troy
Have you considered applying for a job at EngineYard? Perhaps they
need some help to fix the problems you've identified.
In the open source world, when you find a bug, often the response from
the dev team on the project is "we'll get to that eventually, but if
you want to fix it yourself and send in a patch, that would be
awesome". You can take the same tack with the professional world --
offer to work somewhere as a means of patching. :)
Thanks,
Troy