I'm running Rails 4 and using the gem 'acts-as-taggable' to keep track of tags on posts. All extremely simple and works as advertised locally on my machine. However on my VPS (Digital Ocean, Ubuntu 12.04) it doesn't. When saving the post it throws an error.
The behavior is quite strange, it works with lower case Icelandic letters but not with uppercase letters. I've updated the locale on both the server and of the postgres instance, nothing seems to help.