Digital Ocean 512mb, Debian 7 x64, Default Nginx Configuration.

nginx.conf

user  nginx;
worker_processes  2;

error_log  /var/log/nginx/error.log warn;
pid        /var/run/nginx.pid;


events {
    worker_connections  1024;
}

http {
    include       /etc/nginx/mime.types;
    default_type  application/octet-stream;
    keepalive_timeout 10;
    sendfile on;
    tcp_nopush on;

    log_format  main  '$remote_addr - $remote_user [$time_local] "$request" '
                      '$status $body_bytes_sent "$http_referer" '
                      '"$http_user_agent" "$http_x_forwarded_for"';

    access_log  /var/log/nginx/access.log  main;

    gzip              on;
    gzip_http_version 1.1;
    gzip_proxied any;
    gzip_buffers      16 8k;
    gzip_comp_level 6;
    gzip_disable     "msie6";
    gzip_types text/plain text/html text/css application/json application/x-javascript text/xml application/xml application/xml+rss text/javascript application/javascript text/x-js;
    gzip_vary         on;

    include /etc/nginx/conf.d/*.conf;
}