I would agree 150% about what he said on bluehost. I would never recommend a shared host provider (assuming that's the plan you have) to host a rails app.
First, you don't have control over what version of rails and ruby is on their servers (this should be enough to steer you away already).
Also, linode is going to be way faster. Shared hosting providers cram so many people on one server it's a mess. Ram and CPU become scarce and abused. Rails on a shared hosting plan == a nightmare.
Linode is actually 19 a month for bottom plan. I just bought that plan over a month ago, and don't know how I could live without it. It took a half hour to purchase the linode plan, install my distro (ubuntu 10.10 maverick), boot my distro and set up my environment (git, rvm, rails 3.3 and corresponding gems, ruby 1.9.2) (with the right tutorial ). I didn't know it was possible to do this that quickly, I was thrilled.
I have total control over everything, it's easy to use, it's fast and linode is great. Plus I hear they constantly upgrade people for free if they are loyal customers.
If you do choose linode, please use my referral code:
Do not waste your time trying to get a shared hosting provider to work, in the end, you'll realize you wasted a lot of time and stress.
As for a repository, git is a version control system and it is something highly recommended in the development community. Git is free, what he meant is Github is $7 for bottom plan, although that's not true. Github is free for public repositories, in order to have private repositories it's $7 on. But you probably don't need a github account quite yet anyways. But I do recommend using git locally to version your projects.
On linode you would install git yourself (really easy). I'm sure bluehost has some sort of version control software, but it's probably not git.
Last edited by RailsRhino (2011-02-08 17:10:10)