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OpenSSL might be the getting in the way of a smooth install for Rails 4 on AWS. If this is the case, you should check out these general install instructions, which solved some problems that Rails 4 beta users were having.
The solution is to have RVM install a copy of OpenSSL for you. Even if you're not having this problem, it's basically a solid tutorial embedded in a SO question.
The Cloud Zone is brought to you in partnership with Internap. Read Bare-Metal Cloud 101 to learn about bare-metal cloud and how it has emerged as a way to complement virtualized services.