[msie]

I think the most important thing is getting something up and running quickly because you don't know where the design of the system will lead and you don't need the distraction of setting up a server. Don't waste more than a week fretting over this issue. Even a week is too much! During development you can still consider this issue so it's not an either-or thing. You're still developing in rails and can easily move your system to a standalone server. You're just delaying the cost of hiring a system admin or training one while you spend your valuable time in creating a working system which is very valuable in terms of figuring out the design of it.