Ruby on Rails

I have a domain

www.example.com which has php script running

hosting has rails support through ssh

so with ssh i have created a testapp in public_html
so inside testapp all related files are created
then bundle installed
then rail s
it shows

[~/public_html/testapp]# rails s
=> Booting WEBrick
=> Rails 3.2.0 application starting in development on
http://0.0.0.0:3000
=> Call with -d to detach
=> Ctrl-C to shutdown server

but where is it running?
my hosting says to create a subdomain and point to public folder
i done the same

but it was not working

welcome page is displayed

but all other pages shows internal server error


actually how to host a rails app in real website
like
www.exaple.com
or test.example.com

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