1. Create the app in any folder you want. I typically put it somewhere in my home directory (i.e. /home/vinnie/rails/project1).
2. Where did you run the "rails" command to generate your app's skeleton? That's where the files are.
3. Either: run Mongrel/WEBrick on port 80 (./script/server -p 80) or you have to route requests to ROR apps through Apache (or another web server like lighttpd) via proxying or FastCGI.
4. Your document root should be your rails app's /public directory.
5. Upload your site via FTP or similar, make sure your database info is correct, migrate your database (rake db:migrate) and connect your web server of choice to your Rails app (the documentation on this varies by web server).
6. You should be able to run ruby from any directory if you installed it right, but the script/* commands will only be effective from the directory you installed your rails app into.
vinnie - rails forum admin