nginx.conf

server {
  listen 80; # redundant in new nginx versions
  server_name your.hostname.com;
  root /srv/www/path;

  access_log off;
  fastcgi_param SCRIPT_NAME $fastcgi_script_name;	

  location ~ \..*/.*\.php$ {
    return 403;
  }

  # Block access to "hidden" files and directories whose names begin with a
  # period. This includes directories used by version control systems such
  # as Subversion or Git to store control files.
  location ~ (^|/)\. {
    return 403;
  }

  location / {
    try_files $uri @rewrite;
  }

  location @rewrite {
    rewrite ^ /index.php;
  }

  location ~ \.php$|^/update.php {
    set $no_cache "";
    if ($request_method !~ ^(GET|HEAD)$) {
      set $no_cache "1";
    }        

    if ($no_cache = "1") {
      add_header Set-Cookie "_mcnc=1; Max-Age=2; Path=/";
      add_header X-Microcachable "0";
    }

    if ($http_cookie ~ SESS) {
      set $no_cache "1";
    }                

    fastcgi_no_cache $no_cache;
    fastcgi_cache_bypass $no_cache;
#    fastcgi_cache microcache;
    fastcgi_cache_key $server_name|$request_uri;
    fastcgi_cache_valid 404 30m;
    fastcgi_cache_valid 200 1s;
    fastcgi_max_temp_file_size 1M;
    fastcgi_cache_use_stale updating;
    fastcgi_pass unix:/tmp/php-fpm.sock;        
#    fastcgi_pass   127.0.0.1:9000;
    fastcgi_pass_header Set-Cookie;
    fastcgi_pass_header Cookie;
    fastcgi_ignore_headers Cache-Control Expires Set-Cookie;

    fastcgi_index index.php;
    fastcgi_param  SCRIPT_FILENAME $document_root$fastcgi_script_name; 
    include fastcgi_params;
  }

  #Fighting with ImageCache? This little gem is amazing.
  location ~ ^/sites/.*/files/imagecache/ {
    try_files $uri @rewrite;
  }
  
  # Catch image styles for D7 too.
  location ~ ^/sites/.*/files/styles/ {
    #try_files $uri @rewrite;
    try_files $uri /index.php?$query_string;
  }

  location ~* \.(js|css|png|jpg|jpeg|gif|ico)$ {
    expires max;
    log_not_found off;
  }
}