gistfile1.txt

==> INSTALL START -> checkpoint: 

  * Your e-mail address appears to be my@email.com - is that correct?
  * Your IP address appears to be  - are you sure it's a valid IP?
  * Your hostname appears to be  - are you sure it's a valid FQDN hostname?

  NOTE: If your outgoing SMTP requires using relayhost, define first _SMTP_RELAY_HOST.

  * Your core Aegir instance control panel will be available at http://.
  * Your (optional) MultiCore Apache Solr Tomcat will listen on localhost:8080.
  * Your (optional) Chive MariaDB Manager will be available at http://db..
  * Your (optional) Collectd Graph Panel will be available at http://cgp..
  
  NOTE: Chive and Collectd will work only if db. and cgp. subdomains point to your IP.
        But don't worry, you can add proper DNS entries for those subdomains later,
        if you didn't enable wildcard DNS yet. Barracuda can install it now, anyway.

Have you defined your custom values for all 3 variables?

_MY_OWNIP
_MY_HOSTN
_MY_FRONT

[EDIT] The dot . suggests there is something wrong with your /etc/hosts (empty values for both IP and domain?)

no I did not set the custom values this time. When I set them manually I get the "==> EXIT on error due to invalid DNS setup." message

Those 2 commits will allow you to disable DNS test completely, since it will probably never work for not local IP addresses, since it will never find them using ifconfig:

http://github.com/omega8cc/nginx-for-drupal/commit/a81fbd55e8329878ca61bc217868945369a3589b
http://github.com/omega8cc/nginx-for-drupal/commit/c8c8b8039637907f9ccd9d46f99ae86d6d14cc6f