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This is a great "war story" about a small team focusing on a single effort over a short period of time to achieve a huge positive impact. Thanks for sharing. We need more success stories like this.
The only real performance tweak we did was to use JRuby trunk :-). The other part is to off-load our static content to a web server that's more efficient at handling static content -- in our case, Apache -- we could have gone with Nginx, but Apache comes is already enabled with Oracle AppServer, so we used that.
I'm sure there are tons of other performance options we can enable, but for now, we're running pretty smoothly.
However, I was chatting with one of the JRuby devs today and it looks like they just found a big mem leak related to HTTP POST requests... so, you may want to wait for the official 1.1 release of JRuby.
Rich