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What are the major gotchas and tricks when running Rails on a small slice (256MB)? What is the best server setup for cramped quarters? Passenger, Nginx, Mongrel? What is the best background task processor in this kind of environment? What do you need to watch out for? I’d love to hear the stories of people who have done this and bumped into some of the virtual walls.
I’m running Passenger on a 256mb slicehost, no problems. Much, much, much easier to set up than any other alternative. For background stuff I use Starling and Workling and Ryan Bates has an excellent screencast on how to use both together.