Based on the comments to Toby's answer it seems that you would like to be able to have MVC apps used as a component within a new app. Rails Engines (See http://rails-engines.org) provides this functionality. You simply install the engines gem and place apps in vendor/plugins and its modles/views/controller are all accessible.
This does not really conform to HMVC where the controllers in the new app delegate to other controllers. But like Toby I do not see the advantage of that.
What is nice about the Engines approach is that you can over ride any of models in the plugin by just adding a version of the model to the new apps app/model folder (same applies for views and controllers)
I have overidden app/views/layouts to give my Authentication app/plugin the same look and feel as the application it is included in.
For Rails 3 Railtie takes the place of engines and is officially supported (and actually used - Action Mailer is a Railtie plugin. I have not used it myself yet though.
Check it out at http://edgeapi.rubyonrails.org/classes/Rails/Railtie.html
A nice write up on it is also here http://www.igvita.com/2010/08/04/rails-3-internals-railtie-creating-plugins/