Sorry for the cross thread, should have put this recommendation here. I've got a hobo app running on a VPS on http://rimuhosting.com/. Deployed via github. Their prices seemed reasonable and the service is very good. Quick replies to technical questions, good how-tos, they will install a rails stack including passenger for you if you tell them when you sign up. The VPS is very responsive, it seems as quick as dedicated server. Have not stress tested the app in any way so don't know what it would do under load.
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