VirtualBox + Fluxbuntu linux
Fluxbuntu is a lightweight linux distro (300mb iso, ~1gb after install).
comes with Fluxbox wm, which I find to be a bit uncomfortable, but since I don’t use the wm much, I don’t care.
As for Virtualbox, it comes in handy with shared folders
mount with: mount -t vboxsf -o uid=<user> <sharename> /home/<user>/vshare
for usb support: http://paulsiu.wordpress.com/2007/11/20/tips-on-running-innotek-virtualbox/
and ofcouse last but not least, installing ruby:
http://www.urbanpuddle.com/articles/2007/05/09/install-ruby-on-rails-on-ubuntu-feisty-fawn
TOFIX:
I still have problems when changing resolution on-the-fly (screen gets garbled, mouse location is offsetted from actual mouse - this only happens when using vboxvideo driver in xorg.