I\'ve been writing a game for Facebook using Rails and jQuery. Since I started using the Facebook Javascript SDK, using localhost as an app domain seemed to work just fine.
Just a note for some others who may be struggling with this as I was. I have not been able to get this to work with "test" apps. Using my actual app settings (and simply adding
"http://localhost:3000/"
to my canvas URL) worked as everyone else suggested. It seems test apps aren't equal to actual apps.