Is there a gem or method available in Rails 3.1 that can upload assets to amazon cloud front automatically and use those instead of serving locally hosted ones?
Definitely check out asset_sync on github. Or our Heroku dev centre article on Using a CDN asset Host with Rails 3.1 on Heroku.
There is quite a big performance improvement in using asset_sync vs a CDN custom origin, letting your application lazily compile assets in production or serving them precompiled directly off your app servers. However I would say that. I wrote it.