creating two activerecords with one form

There must be a better way of doing this.

If website.save fails...I'm stuck with the new domain, thats not
associated to a website.

  def create
    website = Website.new(params[:website])
    website.domain = Domain.create(params[:domain])
    if website.save
      :flash[:notice] = Server.create_website website
      redirect_to :action => 'list'
    else
      render :action => 'new'
    end
  end

This is a good tutorial on the subject:

http://www.railscasts.com/episodes/73

...also check out parts 2 and 3 of this lesson.

--Andrew

For that you need to use transaction method so that if one save fails
due to any reason then whole transaction should roll back. Something
like this:

def create
    website = Website.new(params[:website])
    website.domain = Domain.create(params[:domain])
    begin
      Website.transaction do
         # the ! in save method is needed to raise any exceptions
         website.save!
         website.domain.save!
       end
      :flash[:notice] = Server.create_website website
      redirect_to :action => 'list'
    rescue
      flash[:notice] = "Your error message"
      render :action => 'new'
    end
  end

Hope that helps....

Also check www.sphred.com