I have found plenty of tutorials on installing Ruby on rails, and creating particular apps, step by step, but havent been able to find a tutorial on how Rails actually works.

Do these not exist as people are just ment to learn ruby and then adapt to rails?
If anyone knows of some beginner tutorials on what the code meens in ruby/rails, and how to use and understand it, give me a link, it would be much appreciated.

Maedi

http://rubyonrails.com/docs

Check out that page if you haven't already. But the one that I learned most from is the book.