The database code is the smoking gun, everyone who uses Rails has used migrations for years now. Just like you don't directly write select, and update queries, you don't write create queries either. In addition to being easier, this approach insulates you from minor changes and allows you to easily switch to MySQL or whatever. If this book isn't advocating that approach, I'd get rid of it.

If you have the stack set up, and want to burn 5 minutes, do this:
mkdir temporary_folder
cd temporary_folder
rails quickapp
cd quickapp
ruby script/generate scaffold story name:string link:string
rake db:migrate
ruby script/server -p 3003
(in browser: http://localhost:3003/stories )

I just ran that one, so no typos.