ASCIIcasts rock. There's a place for screencasts and video demonstrations, but conveying something like the points in Seven Security Tips isn't one of them. The only thing better is just giving a summary, so here it goes.
1. Use attr_accessible in your model to avoid side effects with mass assignment.
When assigning object values with something like User.new(params[:user]) or update_attributes(params[:user]), unintended fields, like allow_admin or has_many relations, may be set with a tool like curl. To prevent this, use attr_accessible in the model to whitelist the fields mass assignment may use.
2. Use validates_attachment_content_type to whitelist upload content types.
You do not want users to upload PHP scripts and whatnot to an accessible portion of your site.
3. Enable filter_parameter_logging for fields that should not be saved in the log files.
It's bad enough when developers fail to encrypt passwords in a database. The next worse blunder is logging the unencrypted passwords. Use this in your application_controller.rb to filter occurrences of parameters. See the Rails API entry for more info. API summary: the filter operates on case-insensitive substrings of all parameters defined.
4. Protect against CSRF by adding protect_from_forgery to your ApplicationController.
Simple yet effective.
5. Scope your Active Record finds to the current user.
This is an easy one to overlook. The first trick is making sure your relationships are defined in your models. Once they are in place you can leverage the association magic: current_user.orders.find(params[:id]).
6. Fer cryin' out loud, parameterize your SQL already!
This should be self-explanatory. In fact, it shouldn't even need mentioning. OK, here's a snippet stolen from the ASCIIcast which borrowed from the Railscast:
@projects = current_user.projects.all( :conditions => ["name like ?", "%#{params[:search]}%"])
7. Sanitize user provided values when displaying HTML.
The Railscast instructs you to use the h method (e.g. <%= h comment.naughty_value =>), but since Rails 3 will do this automatically, you might be better off using xss_terminate which is a handy "install and forget" plugin.

