gistfile1.txt

daemon off;
worker_processes 6;
user nobody nobody;
pid /var/run/nginx.pid;

events {
  worker_connections  1024;
}

http {
  access_log /var/log/nginx_access.log;
  error_log /var/log/nginx_error.log;
  passenger_root /Library/Ruby/Gems/1.8/gems/passenger-2.2.5;
  passenger_ruby /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/bin/ruby;
  passenger_max_pool_size 20;
  passenger_max_instances_per_app 20;
  passenger_pool_idle_time 3600;
  # rails_app_spawner_idle_time 7200;
  # rails_framework_spawner_idle_time 14400;
  include mime.types;
  default_type application/octet-stream;
  sendfile on;
  tcp_nopush on;
  keepalive_timeout 65;
  gzip on;
  gzip_comp_level 2;
  gzip_buffers 16 8k;
  gzip_disable "MSIE [1-6]\.";
  gzip_proxied any;
  gzip_types text/plain text/css application/json application/x-javascript text/xml application/xml application/xml+rss text/javascript;
  
  server {
    listen 80;
    server_name eldorado.local;
    root /Users/trevorturk/Code/eldorado/public;
    passenger_enabled on;
    passenger_use_global_queue on;
    rails_env development;
    client_max_body_size 15M;
    # serve static files without running more rewrite tests
    if (-f $request_filename) { 
      break; 
    }
    # redirect www to non-www
    if ($host ~* www\.(.*)) {
      set $host_without_www $1;
      rewrite ^(.*)$ http://$host_without_www$1 permanent;
    }
    # disable site via capistrano (cap deploy:web:disable)
    if (-f $document_root/system/maintenance.html) {
      rewrite ^(.*)$ /system/maintenance.html break;
    }
    # expires headers
    location ~* \.(ico|css|js|gif|jp?g|png)(\?[0-9]+)?$ {
      expires max;
      break;
    }
  }

  server {
    listen 80;
    server_name static.local;
    root /Users/trevorturk/Code/static/public;
    passenger_enabled on;
    rails_env development;
  }

}

This is your current config?

I'm not actively using nginx at the moment, but it would have been something like this, I think.