Agile Web Development with Rails will teach you all you need to know about Ruby and Rails 3 to build killer web applications. Rails Recipes will expand on that through a wide range of tutorials of best practices.
For more advanced material, Rails core member José Valim has written Crafting Rails Applications.
See all the other Ruby on Rails books at Amazon.
why's (poignant) guide to Ruby is unlike any other guide to programming you have ever read. It features talking foxes, bizzare sidebars, and more crazy humor than most people can handle without loud chuckles.