I use
try_files $uri $uri/ /index.php?q=$uri&$args;
which normaly works fine but in this case it works only for posts, for categories I get 404 error.
Its not theme issue because same is happening with the default theme.
Anyone have any experience with this?
i’ve a full guide here for setting up nginx and WordPress
http://themesforge.com/featured/high-performance-wordpress-part-3/
hope this helps,
Ed