Configuring OS X 10.7 Lion Server to serve Rails Apps via Apache
I've done some experimentation in order to answer my own question...

Firstly, I've only gotten the virtual named host kludge working with Passenger, not the new Lion scheme, but hey, it's a start...

Firstly, follow the Apple temporary fix, as linked in the question.

Then, the following works for me to support two virtual named hosts, implemented using Passenger and Rails. I derived this by taking the Lion virtual host example, and merging in my Snow Leopard config.

Disclaimer this works, but needs improvement.  I've not got SSL working yet.

Add the following in a file named 0000_any_80_.conf

## Example Virtual Host Configuration

&lt;VirtualHost *:80&gt;
    ServerName bongle.example.com
    ServerAlias bungle.example.com
    ServerAdmin bongle@example.com
    RackEnv bongle_production
    RailsEnv bongle_production

    DocumentRoot "/Users/Nigel/Rails/bungle/public"
    CustomLog "/var/log/apache2/access_log" combinedvhost
    ErrorLog "/var/log/apache2/error_log"

    &lt;IfModule mod_ssl.c&gt;
        SSLEngine Off
        SSLCipherSuite "ALL:!aNULL:!ADH:!eNULL:!LOW:!EXP:RC4+RSA:+HIGH:+MEDIUM"
        SSLProtocol -ALL +SSLv3 +TLSv1
        SSLProxyEngine On
        SSLProxyProtocol -ALL +SSLv3 +TLSv1
    &lt;/IfModule&gt;

    &lt;Directory "/Users/Nigel/Rails/bungle/public"&gt;
        Options All +MultiViews -ExecCGI -Indexes
        AllowOverride None
        &lt;IfModule mod_dav.c&gt;
            DAV Off
        &lt;/IfModule&gt;
    &lt;/Directory&gt;

&lt;/VirtualHost&gt; 

&lt;VirtualHost *:80&gt;
    ServerName burble.anothersite.com
    ServerAlias www.anothersite.com
    ServerAdmin bongle@anothersite.com
    RackEnv burble_production
    RailsEnv burble_production

    DocumentRoot "/Users/Nigel/Rails/burble/public"
    CustomLog "/var/log/apache2/access_log" combinedvhost
    ErrorLog "/var/log/apache2/error_log"

    &lt;IfModule mod_ssl.c&gt;
        SSLEngine Off
        SSLCipherSuite "ALL:!aNULL:!ADH:!eNULL:!LOW:!EXP:RC4+RSA:+HIGH:+MEDIUM"
        SSLProtocol -ALL +SSLv3 +TLSv1
        SSLProxyEngine On
        SSLProxyProtocol -ALL +SSLv3 +TLSv1
    &lt;/IfModule&gt;

    &lt;Directory "/Users/Nigel/Rails/school/public"&gt;
        Options All +MultiViews -ExecCGI -Indexes
        AllowOverride None
        &lt;IfModule mod_dav.c&gt;
            DAV Off
        &lt;/IfModule&gt;
    &lt;/Directory&gt;

&lt;/VirtualHost&gt;


Additional contributions to improve this are welcome.