Rails environments

Hi     I have a very basic question to ask. ut I dont know how to handle it properly.Please help. I am working in a team. So I am strting the application in my machine in development mode. Now my manager asked me to give it for testing. So should I start the application in my machine in test environment in another port say localhost:3001 and asks the testers to access my machine? Is the RAILS_ENV=test has that meaning too or is it only for my unit and functional tests? If not another pattern comes in to my mind is to deploy this same application another machine on the network and run it on test mode there?

     In anyway I am totally confused. For example the mail sending etc I am current setup on environments/development.rb like config.action_mailer.default_url_options = { :host => "192.168.0.100:3000" }

     But if I setup application for the testers in the first way i suggested they can't check mail functionaly etc.      So my question is is there any standard procedure for all these? Please help. Please provide some additional readings(urls,..)

Thanks Tom

RAILS_ENV=test has that meaning too or is it only for my unit and functional tests

Yes, the test environment is for automated tests. The test team should have the application in production mode.