David Heinemeier Hansson has announced the release of Rails 2.1.1. You can get up and running with:

gem install rails --version 2.1.1 — remember to prefix with sudo, if appropriate!

Rails 2.1.1 is just a maintenance release of Rails 2.1 but, significantly, patches the REXML vulnerability - so if you haven't done that patch yet (naughty, naughty!) then just upgrade to 2.1.1 and you'll be good to go.

David also points out that a beta release of Rails 2.2 is "quite close" now.

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