PointlessOne

Well, basically that’s all they do.
They have ruby, rubygems and a few gems installed. Also they have a control panel for managing ruby stuff. Have RubyGems manager. But it’s unable to list installed gems, unable to install gems. It’s completely broken. You have to hack a lot in terminal to have an opportunity to install and use other gems.
Next, they have a section for managing rails apps. It can create a new rails app. And… And that’s all. It can not even start that app. It doesn’t generates deploy config. It’s just useless.
BTW, they don’t even think about running mongrels/thins/ebbs/whatever. They are thinking about a single instance on fastcgi.
Next, support. They’re very polite but ignorant. “Is your computer turned on?”. As a solutions they give links to forums where users write “guides” and nothing from site5 itself.

Conclusion: get a slice for same money instead. You’ll be pleased.
BTW, with any VPS you’ll get an opportunity to run not only Rails apps but virtually anything. Like Merb apps.