Hi Jay,

I've a TON less experience than these guys with Rails deployment, so
take what I'm suggesting with a grain of salt. All my Rails apps are
internal, not external, so I'm not seeing traffic like you are.
However, with that said...

I've had a LOT of (good) luck with using LiteSpeed
(http://www.litespeedtech.com) as my web server to serve both static
and dynamic content. The memory footprint is much less than
Apache+mongrel, and it just runs; I don't have to monitor it for
zombie mongrel processes. They have a custom interface/API (LSAPI)
that alows the web server to talk to Ruby, and it's FAST....

Take a look and see if that might be a solution in the context of your VPS...

-- 
Best Regards,

Chris

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