Rails on nginx/passenger/xubuntu error

I just installed latest rails, passenger, nginx on xubuntu.

I deployed a static app (myapp) on port 80 and it seems to work fine. I installed fast-cgi and deployed phpmyadmin on 8888 which works fine. Then I tried to deploy a rails app (test) to port 8484, and it didn't work. I simply copied my rails apps files to /var/www/test/current directory for the deployment. Since 8484 didn't work, I changed the port of the rails app to 80 (previously held by static myapp) and switched myapp to 8484. Now when I hit http://localhost it keeps taking me to the index.html page of myapp, no sign of the rails app.

here is my nginx.conf files, not sure if this is a passenger issue or nginx problem.

The rails app (simple hello world), works just fine in dev.

#user nobody; worker_processes 1;

#error_log logs/error.log; #error_log logs/error.log notice; #error_log logs/error.log info;

#pid logs/nginx.pid;

events {     worker_connections 1024;


http {     passenger_root /usr/lib/ruby/gems/1.8/gems/passenger-2.2.11;     passenger_ruby /usr/bin/ruby1.8;

    include mime.types;     default_type application/octet-stream;

    #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 logs/access.log main;

    sendfile on;     #tcp_nopush on;

    #keepalive_timeout 0;     keepalive_timeout 65;

    #gzip on;

#for test     server {         listen 80;         server_name localhost;

        #charset koi8-r;

        access_log logs/test.access.log;         error_log logs/test.error.log;

        #location / {             rails_env development;             root /var/www/test/current/public;             passenger_enabled on;             #index index.html index.htm;         #}

        error_page 404 /404.html;

        # redirect server error pages to the static page /50x.html