web brick error

Hello,

after installing Nginx with passenger-install-nginx-module, the webrick
server has stopped working:

:~/code/projects/script$ ruby rails server
=> Booting WEBrick
=> Rails 3.0.3 application starting in development on
http://0.0.0.0:3000
=> Call with -d to detach
=> Ctrl-C to shutdown server
Exiting
/home/paul/.rvm/gems/ruby-1.9.2-p0/gems/rack-1.2.1/lib/rack/server.rb:267:in
`initialize': No such file or directory -
/home/paul/code/projects/script/tmp/pids/server.pid (Errno::ENOENT)
  from
/home/paul/.rvm/gems/ruby-1.9.2-p0/gems/rack-1.2.1/lib/rack/server.rb:267:in
`open'
  from
/home/paul/.rvm/gems/ruby-1.9.2-p0/gems/rack-1.2.1/lib/rack/server.rb:267:in
`write_pid'
  from
/home/paul/.rvm/gems/ruby-1.9.2-p0/gems/rack-1.2.1/lib/rack/server.rb:203:in
`start'
  from
/home/paul/.rvm/gems/ruby-1.9.2-p0/gems/railties-3.0.3/lib/rails/commands/server.rb:65:in
`start'
  from
/home/paul/.rvm/gems/ruby-1.9.2-p0/gems/railties-3.0.3/lib/rails/commands.rb:30:in
`block in <top (required)>'
  from
/home/paul/.rvm/gems/ruby-1.9.2-p0/gems/railties-3.0.3/lib/rails/commands.rb:27:in
`tap'
  from
/home/paul/.rvm/gems/ruby-1.9.2-p0/gems/railties-3.0.3/lib/rails/commands.rb:27:in
`<top (required)>'
  from rails:6:in `require'
  from rails:6:in `<main>'

I have 2 problems really - this one, to start server with port 3000, and
Nginx, which will not look anywhere other than
opt/nginx/html/index.html. I think perhaps the two problems are linked -
an error in the routing or config files? I am just trying to use
localhost for port 80 under nginx, and localhost under port 3000 for web
brick.

Any ideas welcome - I will paste any other code as necessary.

Kind regards

2 extracts from gninx config file:

http {
    passenger_root
/home/paul/.rvm/gems/ruby-1.9.2-p0/gems/passenger-3.0.0;
    #passenger_ruby /home/paul/.rvm/wrappers/ruby-1.9.2-p0/ruby;
    passenger_ruby /home/paul/.rvm/bin/passenger_ruby;

#AND#

    server {
        listen 80;
        server_name localhost;

        #charset koi8-r;

        #access_log logs/host.access.log main;

        location /home/paul/code/projects {
            #root html;

       root /home/paul/code/projects/public; # <--- be sure to point
to 'public'!
        passenger_enabled on;

            index index.html index.htm;
        }