A:Meow,
The use of RoR for internal use is amazing. With using it internally there is no reason to have to build a large production stack and you can run rails from a small mongrel process so there is not as much setup. I have setup internal rails apps for police departments and run them from a standard desktop pc and it worked great. Another good reason to start with RoR in this environment is that it will make a nice learning platform for you, as it can start small and you can build it out. I would say go for it.
