title: Nginx doesn't recognize my Rails 3 application
body: <p>I have set up <strong>nginx + REE + passenger</strong> on my Linode VPS, which has been running great for past six month, both for Rails 2.3.x and Sinatra applications.</p>
  
  <p>However this week I tried to add Rails 3 application to the stack, and I keep on getting <code>404 Not Found</code>. Logs show that nginx doesn't recognize Rails application and is trying to serve it as static.</p>
  
  <pre><code>2010/11/29 23:44:44 [error] 12464#0: *29 "/var/app/modelky/public/index.html"
  is not found (2: No such file or directory), client: 90.177.23.122, server:
  reedink.com, request: "GET / HTTP/1.1", host: "reedink.com"
  
  2010/11/29 23:44:44 [error] 12464#0: *30 open() "/var/app/modelky/public/favicon.ico" 
  failed (2: No such file or directory), client: 90.177.23.122, 
  server: reedink.com, request: "GET /favicon.ico HTTP/1.1", host: "reedink.com"
  </code></pre>
  
  <p>However, I'm using the same configuration as I use for all my other Rails 2.3.5 and Sinatra applications that works without any problems</p>
  
  <pre><code>server {
      listen 80;
      server_name www.reedink.com;
      rewrite ^(.*) http://reedink.com$1 permanent;
  }
  
  server {
      listen 80;
      server_name reedink.com;
      root /var/app/modelky/public;
      passenger_enabled on;
  }
  </code></pre>
  
  <p>From what I understand, Rails 3 should be rack compatible, so from the server's point of view, it's no different than any Sinatra application right?</p>