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I second the suggestion for Litespeed. I have a 256 MB VPS at slicehost, and Nginx + 2 Mongrel process w/Rails didn’t leave alot of memory for other things. I switched to Litespeed + Rails via LSAPI, and I found it uses alot less memory running the same number of ruby processes.

I’ve tested alot of front-ends like Apache, LightTPD, Nginx with different backends (Mongrel, FastCGI, SCGI) and Litespeed is the most memory efficient way I’ve found to run Rails.

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