I know nothing about rails and never messed with it, so I don't know if this helps... but another host I use released this when they did a recent upgrade:
So, maybe there are certain things that break on the upgrade? If Ruby has a changelog available, it might be something you could read through and see if you need to change anything you're doing.
I don't know how many people are using it here, but if it's more than a handful, there should be more people jumping in on this thread if it's a system-wide problem.
Otherwise, I would guess that it's just certain scripts breaking.
Or I could be way off, which would be explained in the first sentence of this post.
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