Issue: nginx does not seem to recognize my rails application

Symptoms:

• When the server starts up, it shows the "Welcome to nginx!" message instead of my Rails application.

• Nginx seems to be using the local nginx path instead of the Rails root I specified:

  2010/04/18 06:29:06 [error] 783#0: *1 "/usr/local/nginx/html/blog/index.html" is not found (2: No such file or directory), client: 1.2.3.4, server: www.farmerjade.com, request: "GET /blog/ HTTP/1.1", host: "www.farmerjade.com"

I used [RVM and Passenger Setup on NGINX][1] to install nginx and passenger on a virtual machine.

Here is my nginx configuration:

user farmerjade;
worker_processes  1;
...
http {
    include       mime.types;
    default_type  application/octet-stream;
    passenger_ruby /home/farmerjade/.rvm/bin/passenger_ruby;
    passenger_root /home/farmerjade/.rvm/gems/ree-1.8.7-head/gems/passenger-2.2.11;
...
    server {
        listen       80;
        server_name  www.farmerjade.com;
        root /home/farmerjade/farmerjade/public;
        passenger_enabled on;
        rails_env development;
...

I'd appreciate any help anyone has to offer -- I'm quite new to nginx.