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If activerecord-oracle_enhanced-adapter gem is installed then show "oracle_enhanced" as one of the adapters during Rails app creation. This is the recommended adapter when using Rails with Oracle. More details at: http://blog.arungupta.me/2009/10/totd-110-jruby-on-rails-application-using-oracle-on-glassfish/
Talked to Chris Jones from Oracle and he mentioned that "oracle_enhanced" should replace "oracle" adapter if it is installed.