The one thing that jumps out at me is you are setting the time to utc in 
the cookie. I am pretty sure rails does this for you automatically, but 
am not 100% certain. I know for my cookies I do not have to do this and 
it works fine:

cookies[:name] = {:value => "value", :expires => 1.year.from_now}

Lastly, you might want to check out Authlogic as it is a simple way to 
get authentication into your app:

http://github.com/binarylogic/authlogic/tree/master
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