In fact, I used that as my first resource for learning Rails! Here are some problems I found with it:
1. It teaches you Git along with Rails. Who cares about source control at this point? Remember: This is for a newcomer to Rails that just wants to learn how to create websites using rails; don't confuse me even more.
2. It teaches you how to deploy to Heroku. Again, don't care at this point.
3. It teaches you how to deploy your code to Github. Once again, NEEDLESS INFORMATION AT THIS POINT! :P
4. Unit testing; Ugh, I'm 100 pages in and I barely have a grasp of what I'm doing, and I'm STILL barely 1 controller with 2 actions in.
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There are other alternatives that I think are better for a newbie.
I will concede that Michael's tutorial IS GOOD, but just not good for someone brand new to ruby and rails. I find myself re-reading Rails Tutorial and The Pragprog Agile Rails book every couple of weeks, discovering new things I missed.
That's the way to learn, keep reviewing things.