IPhone Web Development with Ruby on Rails
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Also, there's an onorientationchange event on the window object you can listen for, which would be much more efficient than firing a timer every 200ms.
This article (while a bit old) I think does a better job of showing you should go about writing an iPhone-friendly interface with Rails: http://www.slashdotdash.net/2007/12/04/iphone-on-rails-creat...
I think this is the extension you're referring to - a cursory glance looks good to me: http://github.com/brendanlim/mobile-fu/tree/master
Apple's introduction to Rails development touches on this subject but something more detailed yet still concise is greatly appreciated.
Check out the iPhone SDK for more info: http://developer.apple.com/iphone/