Nginx and pretty permalinks

I have a ton of posts trying to gett his working to no avail
I have tried and currently have the plugin for this installed from
WordPress Nginx compatibility plugin

and here is the nginx.conf file i have tired editing over and over

#user http;
worker_processes  1;
#error_log  logs/error.log;
#error_log  logs/error.log  notice;
#error_log  logs/error.log  info;
#pid        logs/nginx.pid;

events {
    worker_connections  1024;
} 

http {
    include       mime.types;
    default_type  application/octet-stream;
    #log_format  main  '$remote_addr - $remote_user [$time_local] "$request" '
    #                  '$status $body_bytes_sent "$http_referer" '
    #                  '"$http_user_agent" "$http_x_forwarded_for"';
    #access_log  logs/access.log  main;
    sendfile        on;
    keepalive_timeout  15;
    gzip  on;
    gzip_comp_level 1;

server {
        listen       80;
        server_name  localhost;
        root /srv/http;
# enforce www (exclude certain subdomains)
    #if ($host !~* ^(www|subdomain))
    #{
    #   rewrite ^/(.*)$ $scheme://www.$host/$1 permanent;
    #}

    # enforce NO www
    if ($host ~* ^www\.(.*))
    {
        set $host_without_www $1;
        rewrite ^/(.*)$ $scheme://$host_without_www/$1 permanent;
    }

    # unless the request is for a valid file, send to bootstrap
    if (!-e $request_filename)
    {
        rewrite ^(.+)$ /index.php?q=$1 last;
    }

    # catch all
    error_page 404 /index.php;

    # use fastcgi for all php files
    location ~ \.php$
    {
        fastcgi_pass unix:/var/run/php-fpm/php-fpm.sock;
        fastcgi_index index.php;
        fastcgi_param SCRIPT_FILENAME $document_root$fastcgi_script_name;
        include /etc/nginx/fastcgi_params;
    }
    location /phpmyadmin {
        rewrite ^/* /phpMyAdmin last;
    }

	location / {
        root /srv/http;
        index index.php;
    }

    }
}

Can anyone point me in the right direction ?