Nginx virtual host configuration for Craft CMS, PHP5-FPM, NGINX 1.2.1 and craft/config/general.php for friendly URLs.

craft.conf

server {
  listen   80;

  root /var/www/craft.dev/public;
  index index.php index.html index.htm;

  server_name craft.dev;

  location / {
    try_files $uri $uri/ @rewrites;
  }

  location @rewrites {
    rewrite ^(.*) /index.php?p=$1 last;
  }

  location ~ \.php$ {
    try_files $uri =404;
    fastcgi_split_path_info ^(.+\.php)(/.+)$;
    fastcgi_pass unix:/var/run/php5-fpm.sock;
    fastcgi_index index.php;
    include fastcgi_params;
  }

  error_page 404 /index.php;

}

general.php

<?php

/**
 * General Configuration
 *
 * All of your system's general configuration settings go in here.
 * You can see a list of the default settings in craft/app/etc/config/defaults/general.php
 */

return array(

/**
 * Whether generated URLs should be formatted using PATH_INFO, e.g. http://domain.com/index.php/path/,
 * as opposed to using the query string, e.g. http://domain.com/index.php?p=path
 *
 * Possible values: true, false, 'auto'
 */
'usePathInfo' => true

);

@keithmancuso I know your comment is years old, but here's a more efficient way to make that config:

        location / {
            try_files $uri $uri/ @rewrites;
        }
        location @rewrites {
            rewrite ^(/en_gb|de|fr|es)?/(.*)$ $1/index.php?p=$2&$args? last;
        }