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Are there beginner tutorials in doing these things?
Linode has an extensive library with tons of tutorials available here:
http://library.linode.com/Rails tutorial.
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I am new to these stackscripts? are these just regular scripts that I would cut and paste into a txt file and then execute the file?
Yes. They're just bash scripts.
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Do I need to perform security measures like setting up ssh, disabling ports, editing timeouts, etc
Yes.
Securing your server.
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am I allowed to have *.mydomain.com ?
Yes.