I seriously apologize: I mislabeled my second results.

Rails 2.3.5 is much faster than Rails 3

One other difference is that Rails 2.3.5 is running on Ruby Enterprise 
1.8.6 and Rails 3 is running on Ruby Enterprise 1.8.7 both on Ubuntu.

RAILS 2.3.5
Transactions:             312 hits
Availability:          100.00 %
Elapsed time:           60.32 secs
Data transferred:         68.81 MB
Response time:            0.44 secs
Transaction rate:          5.17 trans/sec
Throughput:            1.14 MB/sec
Concurrency:            2.29
Successful transactions:         312
Failed transactions:             0
Longest transaction:          0.99
Shortest transaction:          0.10

RAILS 3
Transactions:             109 hits
Availability:          100.00 %
Elapsed time:           59.77 secs
Data transferred:         23.80 MB
Response time:            2.20 secs
Transaction rate:          1.82 trans/sec
Throughput:            0.40 MB/sec
Concurrency:            4.01
Successful transactions:         109
Failed transactions:             0
Longest transaction:          2.99
Shortest transaction:          0.53

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