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1. Simple blog with comments
2. Pastebin that has short urls (Google some short url algorithms)
3. Make a todo list website (without Javascript)
4. Go back and add authentication (I used devise) to #1 and #2
5. Build a site to send text messages for you using Twilio
6. Create a small site to upload files to using Amazon S3′s free account, this time make it
7. Go Back to #3 and Ajaxify it all. Add user accounts (with email reminders).
8. Build your own JSON and XML API onto #3 or any of the other sites
9. Now take that API you just built and create a Ruby gem out of it using ActiveResource