rahul286 on "Permalinks Nginx not working - Help required"

@ medsha
You are using a lot unwanted code.

Try following config:

server {
        server_name example.com www.example.com;

        access_log   /var/log/nginx/example.com.access.log;
        error_log    /var/log/nginx/example.com.error.log;

        root /var/www/example.com/htdocs;
        index index.php;

        location / {
                try_files $uri $uri/ /index.php?$args;
        }

        location ~ \.php$ {
                include fastcgi_params;
                fastcgi_pass unix:/var/run/php5-fpm.sock;
        }
}

For more details, refer to http://rtcamp.com/wordpress-nginx/tutorials/

Also you can use http://wordpress.org/extend/plugins/nginx-helper/ for removing index.php from permalinks