We are using Rails Playground, they recently introduced VPSes, but their
shared hosting with Apache and Mongrel has been top notch. We plan on
continuing with them, Joe Clarke has been very responsive and a good
admin.
Other than that, some here may recommend Rimuhosting, or Quantact. I
prefer the rails-specific expertise of Rails Playground and Rails
Machine (Bradley Taylor).
Again, if you are really strapped for cash, choose a shared-hosting
account at Rails Playground, then as you grow out of it, Joe provides
some free support for setting up your Rails app. Sure seems good to me.
Timothy Johnson
www.foundinteractive.com
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