We recently deployed a Rails 3 application that uses Bundler to manage dependencies. We freeze the gems in the application so it can be deployed on the same boxes as other applications that have different gems. It is best to start with a gemset with zero gems, then install only the bundler gem, then let bundler install everything else. Installing gems should be as simple as bundle install. Built gems will have a .gem file stored in vendor/cache. We tried a few options before getting things right with Bundler, and did notice some fixes related to freezing gems that were present in 1.0.12 which is what we're using now.
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Bundler in practice
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