I tried this before mod_rails launched.

Pushing my command log for reference.

This setup uses rubyworks, details can be found here http://studios.thoughtworks.com/rubyworks
I tried this on a redhat machine. The setup seems to be working perfectly fine.
clear
2 ruby
3 yum install ruby
4 wget http://rubyworks.rubyforge.org/RubyWorks.i386.repo
5 sudo cp RubyWorks.i386.repo /etc/yum.repos.d/
6 uname -A
7 uname -a
8 yu update
9 yum update
10 yum install rubyworks
11 vi /etc/rails/haproxy.conf
12 /usr/sbin/sv restart haproxy
13 vi /etc/sysconfig/syslog
14 vi /etc/syslog.conf
15 service syslog restart
16 tail -fn200 /var/log/haproxy.log
17 tail -fn200 /var/log/haproxy.log
18 tail -fn200 /var/log/haproxy.log
19 ls
20 updatedb &
21 locate .pem
22 locate .pem
23 vi /etc/rails/monit.conf
24 /usr/sbin/sv restart monit
25 vi /etc/rails/monit.conf
26 /usr/sbin/sv restart monit
27 /usr/sbin/sv stop monit
28 gem list
29 gem install mysql
30 gem install mysql
31 vi /etc/hosts
32 cd /usr/rails/
33 ll
34 cd ..
35 ll
36 mv rails/ rails_skel
37 ll
38 mv /home/vivek/httpdocs.tar.gz .
39 tar -xzf httpdocs.tar.gz
40 ll
41 mv httpdocs rails
42 chown rails:rails rails
43 ll
44 chown -R rails:rails rails
45 cd rails_skel/
46 ll
47 cd public/
48 ll
49 vi dispatch.fcgi
50 cd ..
51 cd ..
52 cp rails_skel/public/dispatch.* rails/public/
53 cat rails_skel/config/environment.rb
54 cat rails_skel/config/environments/production.rb

cd log
57 ll
58 rm development.log
59 ll
60 echo ” > development.log
61 echo ” > mongrel.log
62 rm mongrel.pid
63 ll
64 ll
65 ls
66 /usr/sbin/sv
67 /usr/sbin/sv restart
68 /usr/sbin/sv restart mongrel
69 /usr/sbin/sv restart mongrel_*
70 /usr/sbin/sv restart mongrel_3002 mongrel_3003 mongrel_3004 mongrel_3005
71 ll
72 tail -fn200 development.log
73 ll
74 rm ferret_index
75 rm ferret_index.log
76 /usr/sbin/sv restart mongrel_3002 mongrel_3003 mongrel_3004 mongrel_3005
77 /usr/sbin/sv status mongrel_3002 mongrel_3003 mongrel_3004 mongrel_3005
78 /usr/sbin/sv restart haproxy
79 ls
80 cd ..
81 cd config/
82 ls
83 vi environment.rb
84 gem install ferret
85 gem install acts_as_ferret
86 gem install acts_as_ferret
87 vi environment.rb
88 gem install acts_as_ferret
89 gem install -r acts_as_ferret
90 gem install -r acts_as_ferret
91 gem install acts_as_ferret
92 gem install acts_as_ferret
93 wget http://rubyforge.org/frs/download.php/28079/acts_as_ferret-0.4.3.gem
94 cat /usr/lib/ruby/gems/1.8/source_cache | more
95 cd /usr/rails
96 cd config/
97 vi database.yml
98 cd ..
99 ruby script/server -p3002
100 /usr/sbin/sv start mongrel_3002 mongrel_3003 mongrel_3004 mongrel_3005
101 yum install ImageMagick
102 yum install ImageMagick-devel
103 gem install rmagick –source http://gems.rubyforge.org
104 gem install rmagick –source http://gems.rubyforge.org
cd config/
97 vi database.yml
98 cd ..
99 ruby script/server -p3002
100 /usr/sbin/sv start mongrel_3002 mongrel_3003 mongrel_3004 mongrel_3005
101 yum install ImageMagick
102 yum install ImageMagick-devel
103 gem install rmagick –source http://gems.rubyforge.org
104 gem install rmagick –source http://gems.rubyforge.org
105 cat /usr/lib/ruby/gems/1.8/gems/rmagick-1.15.11/gem_make.out | more
106 cd /usr/lib/ruby/gems/1.8/gems/rmagick-1.15.11
107 ll
108 ./configure
109 ruby setup.rb
110 ll
111 cat gem_make.out | more
112 cat config.log | more
113 cat config.log | more
114 cat config.log | more
115 locate imagemagick
116 vi config.log
117 yum install libtiff
118 yum install libtiff
119 yum install libtiff-devel
120 yum install libjpeg-devel
121 yum install libpng-devel
122 gem install rmagick –source http://gems.rubyforge.org
123 vi config.log
124 gem install rmagick –source http://gems.rubyforge.org
125 ll /usr/share/fonts
126 ll /usr/share/fonts/default/
127 ll /usr/share/fonts/default/Type1/
128 rpm -Uvf /home/vivek/msttcorefonts-1.3-4.noarch.rpm
129 ll /usr/share/fonts/default/
130 rpm -q msttcorefonts
131 rpm
132 rpm –whatprovides msttcorefonts-1.3-4
133 locate ttf
134 updatedb &
135 locate ttf
136 locate ttf
137 cd /usr/share/fonts/
138 ll
139 ll msttcorefonts/
140 pwd
141 cd default/
142 ln -s /usr/share/fonts/msttcorefonts/ TrueType
143 history
144 history | more
gem install rmagick –source http://gems.rubyforge.org

Successfully installed rmagick-1.15.11 YYAAAAYYYYYY

/usr/sbin/sv restart mongrel_3002 mongrel_3003 mongrel_3004 mongrel_3005