I've only recently started with Ruby on Rails myself.  Check out my
insights, procedures, and deployed projects at http://www.jasonhsu.com/ror.html
.  I put this page together partly as a resource for the Ruby on Rails
community but mostly as a reference for myself.

The things I insist on:
1.  I do my Ruby on Rails development in VirtualBox.  Like you, I
found it tricky to properly set everything up - you need the right
versions of multiple packages.  It felt like I had to make sure all
the planets were properly aligned.  VirtualBox allows me to install a
Linux distro on a virtual drive and take snapshots.  If I screw up, I
can return to a previous snapshot rather than have to start over.  I
know that many people like RVM.  I tried to use it, but I couldn't get
it to work, so I stick to using VirtualBox snapshot to seamlessly
switch from one snapshot to another.  (I recommend using one of the
newest VirtualBox versions so you get the clone feature.)
2.  I insist on deploying early and often.  This allows me to spot any
deployment problems early on and correct them.  I once tried waiting
until the end to start deployment (because the book did), and I
couldn't get my app deployed.

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