[Rails] Help choosing gems for new project

Hi everyone, I'm new to RoR and looking for help choosing gems for a
website I'm building.

I looked at the guide here:
http://intridea.com/2011/5/13/rails3-gems

but was hoping someone could give me more specific help.

I want a basic image upload and thumbnail creator tool.

I've looked at the existing gems like mini_magick and and R_magick but
I'm not sure what exactly they do or how to set them up in the
Gemfile.

Thanks for the help!

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