First you need to set the association in the models.
Items
has_many :item_tags
has_many :tags, :through => item_tags
Item_tags
belongs_to :item
belongs_to :tag
Tags
has_many :item_tags
has_many :items, :through => item_tags
Then in your controller you can do this:
red_tag_items = Tag.find_by_name('red').items
yellow_tag_items = Tag.find_by_name('yellow').items
red_yellow_tag_items = red_tag_items & yellow_tag_items
There must be more efficient ways to do this. Would love to find out. :)