RealtorDC on "[Plugin: W3 Total Cache] Updating nginx.conf crashing server, what am I missing?"

Just installed W3 Total Cache and it appears most is working except on the dashboard I get:

W3 Total Cache error: It appears Page Cache URL rewriting is not working. Please verify that all configuration files are included in the configuration file (and that you have reloaded / restarted nginx).
Unfortunately disk enhanced page caching will not function without custom rewrite rules. Please ask your server administrator for assistance. Also refer to the install page for the rules for your server.
Technical info
</blockquote>
I append my nginx.conf file with what it tells me (below) and when I reload nginx nothing will load, crashes my server.  What am I missing?

<blockquote># BEGIN W3TC Page Cache core
rewrite ^(.*\/)?w3tc_rewrite_test$ $1?w3tc_rewrite_test=1 last;
set $w3tc_rewrite 1;
if ($request_method = POST) {
    set $w3tc_rewrite 0;
}
if ($query_string != "") {
    set $w3tc_rewrite 0;
}
if ($http_cookie ~* "(comment_author|wp\-postpass|w3tc_logged_out|wordpress_logged_in|wptouch_switch_toggle)") {
    set $w3tc_rewrite 0;
}
set $w3tc_enc "";
if ($http_accept_encoding ~ gzip) {
    set $w3tc_enc _gzip;
}
if (!-f "$document_root/wp-content/cache/page_enhanced/$http_host/$request_uri/_index.html$w3tc_enc") {
  set $w3tc_rewrite 0;
}
if ($w3tc_rewrite = 1) {
    rewrite .* "/wp-content/cache/page_enhanced/$http_host/$request_uri/_index.html$w3tc_enc" last;
}
# END W3TC Page Cache core
# BEGIN W3TC Page Cache cache
location ~ /wp-content/cache/page_enhanced.*html$ {
    add_header Vary "Accept-Encoding, Cookie";
}
location ~ /wp-content/cache/page_enhanced.*gzip$ {
    gzip off;
    types {}
    default_type text/html;
    add_header Vary "Accept-Encoding, Cookie";
    add_header Content-Encoding gzip;
}
# END W3TC Page Cache cache
# BEGIN W3TC Browser Cache
gzip on;
gzip_types text/css text/x-component application/x-javascript application/javascript text/javascript text/x-js text/richtext image/svg+xml text/plain text/xsd text/xsl text/xml image/x-icon;
# END W3TC Browser Cache

http://wordpress.org/extend/plugins/w3-total-cache/