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Cleanup coffee code
added $(loader).fadeOut('slow'); before displaying new content with $(content).html('<%= j render("index") %>');
missing (e) in $('a[data-target=#ajax-modal]').on 'click', ->
Updated Ruby on Rails AJAX Modal Example (markdown)
Tweaking to use the modal manager, in a semi proper fashion. Since the dual bind over .js / data-remote, you must stop progration and manual call rails ujs.
Haml alternative
Created Ruby on Rails - AJAX Modal Example (markdown)