I use Dreamhost to host my websites and they have now added support for Passenger (a.k.a mod_rails). Ruby on Rails deployment hassles should be a distant memory soon!

If you’re looking for a cheap and cheerful hosting company for your Rails app, I highly recommend Dreamhost. It’s great for the solo developer (or small team) because for a small amount per year you can launch your site on a shared hosting service and then later easily migrate it to a virtual private server as your needs change.