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I have installed Rails on my localhost, and now, I would like to install it on an Amazon EC2 server.

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This should do it for you pretty much. It is a deployment tool writtne specifically for EC2 - and its called EC2 on rails.

http://ec2onrails.rubyforge.org/

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Ssh into your ec2 instance and run:

sudo apt-get install ruby1.9.1-full
sudo gem install rails

Done.

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