There are several options for handling a multi-tenant app.
Firstly, you can add a scope to your tables (as suggested by Chad Birch - using a company_id). For most use-cases this is fine. If you are handling data that is secure/private (such as accounting information) you need to be very careful about your testing to ensure data remains private.
You can run your system using multiple databases. You can have a single app that uses a database for each client, or you can have actually have a seperate app for each client. Running a database for each client cuts a little against the grain in rails, but it is doable. Depending on the number of clients you have, and the load expectations, I would actually suggest having a look at running individual apps. With some work on your deployment setup (capistrano, chef, puppet, etc) you can make this a very streamlined process. Each client runs in a completely unique environment, and if a particular client has high loads you can spin them out to their own server.
If using PostgreSQL, you can do something similar using schemas.
PostgresQL schemas provide a very handy way of islolating your data from different clients. A database contains one or more named schemas, which in turn contain tables. You need to add some smarts to your migrations and deployments, but it works really well.
Inside your Rails application, you attach filters to the request that switch the current user's schema on or off.
Something like:
before_filter :set_app
def set_app
current_app = App.find_by_subdomain(...)
schema = current_app.schema
set_schema_path(schema)
end
def set_schema_path(schema)
connection = ActiveRecord::Base.connection
connection.execute("SET search_path TO #{schema}, #{connection.schema_search_path}")
end
def reset_schema_path
connection = ActiveRecord::Base.connection
connection.execute("SET search_path TO #{connection.schema_search_path}")
end