Well, it seems you misunderstood me
The application is a read only application from the user side. The
user is only going to view the matrerial and not to write anything.
So, database will be readonly on the cd. As for the logs emmm. Will
think of a way to disable them. But I am not sure whether we can have
ruby on rails running on cd.
If the application is read only, then you might be able to get away
with a framework like webby: http://webby.rubyforge.org/
It will generate static HTML. You can probably get away without even
running a webserver.
If that won't work for you, I'd suggest you look at InstantRails
(assuming all your clients run Windows). I used this once for an app
that had to run locally (i.e. we couldn't have a webserver). But you
are still looking at a headache to try to run it ONLY from the CD. You
could probably create an easy installer though.