Decaflon

What did you come from? PHP? I think the best way to get into the language is to just start coding stuff in it. I tried looking at manuals and tutorials when I started
and also tried to start coding an ajax chat app. That was too overwhelming. What I would suggest is trying to build a simple CMS or something. I also ported a few php apps to ruby and that helped me a lot.

As far as books/tutorials the two things the helped me the most were "Agile Web Development on Rails" and "Rails Recipes". These two books helped me the most. Be sure to get the newer versions of each, as they are more update and reflective of the current state of rails.

In summary, get a project that you need to do it, and do it in rails. That's how I learned.

Sounds very fair, and yes I am coming from a very high PHP platform.

When you say build a CMS application, do you recommend me coding it from the base up or just using scaffle to basically... build it for me while I just give the direction?

Try some of the screencasts available on RoR official website, they can show you a good path to go through and if you have enough time you can also read three or four tutorials of what's available there too.

One of the best ways I learned Rails with was studying other's code, try to go through Typo code, it will help you understand the code structure in Rails, MVC, Tests, Plugins, Helpers...

Browse through the plugins as well, there are too many handy ones there, if you are willing to build a CMS for practise you will find plenty of tools in the plugins directory and finally don't forget to do testing for all the code you do.

I double blissdiv books recommendations plus some Ruby books too like "Ruby for Rails" and "Programming Ruby", understanding Ruby itself will help you reach Rails extreme.

I agree with Rida with learning Ruby to the max, it will incredibly enhance your rails proficiency.

In reference to scaffolding, I really think you should avoid them and build from the ground up. Scaffolds are weak, and in the end you'll benefit much more from learning how to do everything.

I think the one thing scaffolding is good for, is looking at code in action. See what it does and then try to implement it yourself. That's the only benefit I can see it it.

I agree with blissdev, Agile Web Development on Rails" and "Rails Recipes" are excellent books. On top of that I would add the Pick Axe book to learn about Ruby.
Then practice, practive, practice.
Also read from others, there are a lot of great blogs abour ruby and about rails.
Lastly, install some existing apps and study how they have been built. You'll learn a lot from them.