This could work. I'm thinking, like an extension to BaseCamp or something. Or similar. It would need:
1. A well-designed web app for project management 2. A zero-config Rails server, and 3. Easy editing: ftp/scp along with bundles for the most popular editors.
Allowing developers to use their own editor is an _essential_ ingredient. So Zero Rails would need a TextMate bundle to start with (for editing files and uploading changes), and emacs/vi/vim bundles later on.
Cool idea!
-roy