What is current state of the art for enabling OpenID login in Ruby on Rails applications? This is a community wiki with up-to-date answers to this question.
The definitive resource should be the rails wiki, although I use should advisedly because things have been changing quite fast when it comes to OpenID support.
Ryan Bates' Railscast on Openid is the best thing I've found to follow. Even though it was recorded with Rails 1.2.3, I've been able to successfully follow the tutorial with Rails 2.1.0. The only point to note is that for:
gem install ruby-openid
I installed 2.1.2, rather than the 1.1.4 used in railscast.
The OpenID plugin used is open_id_authentication, and I tested it in combination with restful_authentication from git://github.com/technoweenie/restful-authentication.git
NB: I subsequently wrote this up in a blog post.