I just finished posting a rails template that creates an app ready to deploy on the Google App Engine. Check out the blog post http://www.codingforrent.com/posts/8001 and the template at http://github.com/joshsmoore/gaej_rails_template/tree/master. It is still a bit of work in progress. But, it should take care of the basics of getting a Rails app set up for deployment on the Google App Engine. Please tell me what you think.