You may be surprised that the materials on Rails 1.2 are still a good place to start. Though many things have changed between 1.2 and 2.1, the stuff written on 1.2 is still very helpful at showing the core activities involved in building a Rails app. Agile Web Development With Rails may be a little outdated, but it's still worth reading, if only to get the hang of the Rails philosophy. There is a Third Edition being written, and it'll likely be one of the definitive references on Rails 2.x. The authors are all extremely well-versed in Rails development, and include the original creator of Rails framework.
All that said, I think that the best materials currently out there on Rails 2.x are the Peepcode reference materials.
I recommend that you start with the two screencasts:
They do a great job of visually introducing you to Rails 2 development. Then, I'd recommend you pick up the Rails 2.1 PDF by Ryan Daigle, to get the hang of the 2.1 features not covered in the screencasts.
That should be enough for quite the kickstart, but you may find yourself looking for more advanced or reference material at that point. If you're not familiar with Ruby's advanced features like blocks, closures, and the like, you'll probably want The Pickaxe Book from Pragmatic Programmers.
Once you've got the hang or Ruby and the basic of Rails, the great books to get better, in my opinion, are:
Once you get a firm grounding, it's also a good idea to watch the Railscast Screencasts each week. They present a great 5-minute howto each week that helps to keep you sharp. There are currently over 100 to choose from.