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What version of chef server are you using? It appears to have been fixed a while again: http://tickets.opscode.com/browse/CHEF-489 .

Perhaps your issue is not tied to your ruby version: http://tickets.opscode.com/browse/CHEF-920

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The problem wasn't ruby 1.9, but ruby 1.9.1 specifically. I upgraded ruby to 1.9.2 and the stability issues went away. On 1.9.1 the server would randomly hang and require a kill -9+manual restart.

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