I'm a big fan of Heroku as well.

Another option, although they aren't specifically rails-oriented, is 
dreamhost.com

Pros -
- Cheap -- Unlimited domains (excluding registration) bandwidth, storage,
  shell accounts, email addresses, mailing lists, etc all for under 
$10/month.
  (They also have occasional first-year-free offers.)
- Free hosting for 501(c)3 charities.
- Very spiffy web-based control panel
- A broad range of preloaded software and 1-click installs offered.
- Rails available via Apache/Passenger. (NOT a 1-click install)
- VERY reliable. (I know, I shouldn't say that ... tempting the gods and all 
that.)
  They are a fairly "grown up" company - 300K customers on 4K servers.
- Free two week trial.

Cons -
- Default configuration supports ruby 1.8.7 and rails 3.0.9 only.
- No customer access to the system-wide error logs.
   i.e. silent failure on config/start-up errors.  Once your process is
   up and running your logfiles will work.  But if the error is early enough
   (e.g. syntax error in a config file) you have to contact tech support
   and ask them to look at the error output for you.  So type carefully.
- PostgreSQL not supported. (They say "maybe someday".)
- Mediocre system documentation.
- Bare-bones tech support in general and for ruby/rails in particular.
  And if you stray from their ruby/rails defaults you are completely on your 
own.

So if you have a bunch of domains, not so much money, and are comfortable
on the *nix command line, they are worth looking at.

But if you want to keep things simple, go with Heroku.

Dan Nachbar

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