As I am upgrading one of our projects to rails3 right now, I had to deal with lots of obsolete and not longer working code. And I came across this little gem I picked up from Pratik Naik. It allows you to nest your layouts pretty easily. If you upgrade to rails3 you have to change the code to:

def parent_layout(layout)
  @_content_for[:layout] = self.output_buffer
  self.output_buffer = render(:file => "layouts/#{layout}")
end

RubyOnRails does no longer use multiple instance variables to store the contents, but a single hash.