Sometimes with remote server's you may have to supply the files relating to the current version of rails your writing for in order to run your app on someone else's server, like mosso.com.
Freezing Rails
So in Terminal, while in your Rails apps directory run:
rake rails:freeze:gems
This will unpack the rails version your using into the /vendor/rails directory of your app.
From there you can upload it to your server and it should just work.
Thawing Out
To reverse the process...
rake rails:unfreeze
This removes the frozen version from your vendor/rails directory.
Picking Up Changes
Also note new rails versions come with config file changes, to pick these up run:
rake rails:update:configs
Freezing to the Edge
You can also freeze (or grab a local development copy) of rails via...
rake rails:freeze:edge
Or Freeze to a specific release with...
rake rails:freeze:edge TAG=rel_2-0-2
This freezes to Rails 2.0.2
Also for...
You can also do this for individual gems, by first grabbing the gemsonrails gem...
sudo gem install gemsonrails
Then moving to your Rails app directory and running...
gemsonrails
This installs some extra RAKE tasks into your app, so now you can freeze a local copy of say the RedCloth gem into your app via...
rake gems:freeze GEM=RedCloth