gistfile1.rb

    server {
          server_name foo.com;
          #root /home/sites/foo/public;
          root /home/sites/foo/cs-bs;
          index index.html index.htm index.php;
  #htpasswd
          auth_basic "Restricted";
          auth_basic_user_file /home/sites/foo/passwd;
          
          location = / {
            error_page 404 index.php;
          }
          location = /favicon.ico {
                  log_not_found off;
                  access_log off;
          }
                  
          if (!-e $request_filename) {
                  rewrite ^/(.*)$ /index.php?q=$1 last;
          }
          
  # hide protected files
          location ~* .(engine|inc|info|install|module|profile|po|sh|.*sql|theme|tpl(.php)?|xtmpl)$|^(code-style.pl|Entries.*|Repository|Root|Tag|Template)$ {
                  deny all;
          }
          
  # hide backup_migrate files
          location ~* ^/files/backup_migrate {
                  deny all;
          }
  # Fighting with ImageCache? This little gem is amazing.
          location ~ ^/sites/.*/files/imagecache/ {
                  try_files $uri @rewrite;
          }
  # Catch image styles for D7 too.
          location ~ ^/sites/.*/files/styles/ {
                  try_files $uri @rewrite;
          }
  # serve static files directly
          location ~* ^.+.(jpg|jpeg|gif|css|png|js|ico)$ {
                  access_log        off;
                  expires           30d;
                  log_not_found off;
          }       
                  
     location ~* ^((?!/sites/default/files/).+\.php)$ {
                  fastcgi_split_path_info ^(.+\.php)(/.+)$;
  #NOTE: You should have "cgi.fix_pathinfo = 0;" in php.ini
                  include fastcgi_params;
                  fastcgi_param SCRIPT_FILENAME $document_root$fastcgi_script_name;
                  fastcgi_intercept_errors on;
                  fastcgi_pass unix:/var/run/php5-fpm.sock;
          }       
          location /old_folder/ {
            return 301 http://www.drupal.com/projects/$request_uri;
          } 
  }

regex for sites php parsing worked out at http://goo.gl/WCeIsD