Looking for a project to work on

Daniel,

   > I am currently looking for a project to work on free of charge..
   > and to learn as much as possible. I am an amateur ruby and rails

Nothing like a real paying client to put you seriously on the Rails.
My suggestion is to look for a local sport club, or an art center, or
no-benefits associations and offer them to build a 'portal' ( news +
members + forums + photo album + ...) to get a web presence.
I strongly advise you work for peanuts, rather than nothing. And with
cheap hosters like DreamHost or RailsPlayground, you can even include
1 year of hosting in your bill.

Alain