I am working on a Rails application which is in development mode and it can register with omniauth.
The host is
http://localhost:3000/
I mucked around with this for ages.. perhaps it has changed but: http://localhost:3000/users/auth/instagram/int_callback was the callback URI that finally worked for me. The ONLY issue i was having was that it was exactly an incorrect callback uri and wish I had seen here that I should be focusing on my Instagram setup instead of modifying my code.. to get the error message means everything else is working (so far), otherwise you would not be getting that particular error message. Good luck!! - don't get distracted!